The downgrading of Portugal's sovereign debt rating, combined with continued confusion regarding a Greek bailout package has caused the Euro to remain at record lows against its major currency counterparts. In addition to EUR/USD, which has already sunk below the 1.3300 this morning, EUR/GBP continues to go down. Currently trading at 0.8913, the pair has dropped over 50 pips in the last 24 hours. EUR/CHF was able to rebound slightly from the record low reached yesterday, and is currently trading around the 1.4270 level.

Traders will want to pay careful attention to a number of important afternoon news events. The U.S. Unemployment Claims set to be released at 12:30 GMT, as well as Fed Chairman Bernanke's testimony at 14:00 GMT, are both likely to impact the Dollar. In addition, any news from the EU Economic Summit, which is currently in progress, regarding the Greek bailout will likely create further volatility for the Euro. Traders will want to listen for any possible IMF involvement in the bailout, which if occurs, will likely send the troubled currency farther down.