Published by Jamie JemmesonThe euro touched a seven-week high against the yen in global forex trading this morning (July 26th) as investors responded positively to the results of the European banking stress tests.While seven of the 91 banks under scrutiny failed the stress tests, investors were reassured about the resilience of the European financial system, although there were also questions raised about whether the tests were rigorous enough.Speaking to Reuters, Mitsuru Sahara, chief manager of FX derivatives trading at Bank of Tokyo-Mitsubishi, said these concerns may haunt the euro in days and weeks to come, but for the moment it looks to have notable upward momentum."In addition to higher stocks, charts suggest the euro is on an upward trend as the currency has managed to rebound sharply after hitting a recent low at 110.02 yen last week," he said.Elsewhere, Bloomberg reports that mounting evidence of a recovery in Europe and a slowdown in the US has caused a number of global financial houses to take a more bullish stance on the euro.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.