The Euro reversed its early morning gains today, following a less than stellar opening in the European stock market. The single European currency hit an all time low against the Swiss Franc, and is currently approaching the psychologically significant 1.3800 level. EUR/USD continues to fall, with the pair hovering around a 4-year low. Currently trading around the 1.1930 level, analysts are forecasting the Euro to fall further in afternoon trading against the greenback.

Afternoon and evening trading will likely revolve around any news regarding the latest austerity package to come out of the Euro-zone. Fresh debt concerns coming out of Hungary and Spain continue to weigh down on the Euro, and may lead to further losses against the greenback.

In addition, traders will want to pay attention to the Canadian Housing Starts Report set to be released at 12:15 GMT. Analysts are forecasting a slight increase over last month. If true, the CAD could see some gains against the USD in evening trading.