The euro fell against most of the major currencies during Monday's trading session. The 17-nation currency began yesterday's session with sharp drops against both the U.S. dollar and the Japanese yen The EUR/USD fell 120 pips and the EUR/JPPY dropped 70.
The euro slid yesterday after European finance ministers ruled out immediate steps to fight off the region's debt crisis. The officials agreed that a permanent rescue mechanism to be set up in 2013 would total 500 billion euros, yet they did not announce immediate steps as expected. The German Finance Minister added that the markets are so stable right now that it's better not to unsettle them with superfluous discussions.
The market received the announcement with a measure of disappointment after expecting to the officials to agree on immediate steps, and this has added to the bearish pressure on the euro.
As for today, a batch of data is expected from the euro-zone. The most significant releases look to be the German Preliminary Gross Domestic Product and the German ZEW Economic Sentiment. Germany holds the largest and strongest economy in the euro-zone, and thus its financial outlook has a significant impact on the euro. If the end results will provide positive data, the euro might correct yesterday's losses.