While the EUR/USD pair continues to fluctuate somewhat erratically, the European currency has continued to take losses against the Japanese yen. An increase in risk aversion has largely fueled the euro's drop against the JPY. Late yesterday, the pair tumbled well over 100 pips, before making a slight correction in overnight trading. Currently the pair is trading around the 110.40 level. At the same time, the euro was able to make substantial gains against the British pound, shooting up some 75 pips yesterday.

Today, traders can expect the euro to have a relatively mild day, largely due to the lack of substantial European economic indicators. Furthermore, with investors likely to continue selling off their riskier assets, the euro may take some small losses in afternoon trading.