The euro's mild downturn against its rivals was brought on at the start of this week's trading by reduced optimism regarding the EU rescue fund's expansion. Some analysts were disappointed that the finance ministers of the 17-nation bloc did not take further measures to bolster the bailout mechanism. This temporary setback pushed the EUR down against most of its rivals yesterday.

The GBP/EUR was perhaps the hardest hit among the euro's pairs, trading near the 0.8340 mark this morning from as high as 0.8500 last Friday. The EUR/USD saw a mild downturn, hitting just below 1.3300 before closing out Monday's trading.

Looking ahead to today, one can see a number of significant economic events on the calendar from Britain and the euro zone. The CPI and RPI inflation reports from Britain should kick-start the European session with a dose of volatility, possibly pushing the British pound higher against its rivals in early morning trading.

The ZEW reports from Germany and the broader euro zone should add to what Britain's inflationary figures start. The close proximity of these two reports means that traders should be on guard in today's early hours as sharp swings in value may be imminent.