The euro fell broadly this morning, following renewed investor doubts in the size and potential effectiveness of the euro-zone bailout fund. Concerns that Germany will not support an increase in the bailout fund contributed to the decline of the currency. The EUR/USD fell some 145 pips from last night before staging a slight correction. Currently the pair is trading around the 1.3320 level. The EUR/JPY has fallen more than 100 pips in the same amount of time, and remains on its downward trend.

Low volatility is expected for the rest of the day, as a bank holiday in the US has limited the amount of significant news being released today. Traders will want to pay attention to any announcements out of the euro-zone. In low liquidity situations like the one right now, even the smallest piece of news has an exaggerated effect on the marketplace. Anything negative regarding the euro-zone is likely to send the 17-nation single currency plummeting.