The EUR hit a 5-week low against the USD, before recovering in late-day trading. This behavior was due to a variety of factors, such as fears about the prolonged economic crisis, as unemployment continues to grow. Furthermore, Joaqin Almunia, the EU Economic Commissioner stated that the Euro-Zone is likely to be constrained by low economic growth for the foreseeable future. The reasons for these remarks were due to the nations of Europe spending very heavily on the financial crisis. In turn, this has resulted in mounting debt that may cripple their recovery in the long-run.

The EUR/USD pair hit the 1.3875 level before recovering back towards 1.3964. Analysts are now left wondering on the state of Britain too as the island economy faces losing its AAA debt rating. If it does indeed end up losing this, then Britain's economy would be in permanent retreat, meaning the GBP will be put on life-support. However, the recent worsening of the banking situation in Germany and the threat of collapse in other Euro-Zone currencies may mean even more dire consequences for the EUR in the long-run.

Looking ahead to today, there is plenty of news that is set to determine the EUR and GBP crosses for today's trading. At 10:00 GMT German Factory Orders are set to be published. From Britain, we can expect the Manufacturing Production figures and Industrial Production figures at 8:30 GMT and Consumer Confidence at 23:01 GMT. Positive results from Britain and the Euro-Zone may lead the way for the rest of the week. This could lead to lessening risk aversion, as traders ditch the USD and JPY, in favor of the EUR and GBP.