Turmoil throughout Greece has weighed heavily on the Euro over the last few days. With violence recorded throughout Greece, there is now a very real fear that fiscal instability could spread to other European currencies. The most glaring example of the single currencies troubles is illustrated by EUR/USD, which is currently trading at fresh 14-month lows. The last 24-hours alone have seen the pair drop almost 200 pips. In addition, EUR/JPY has fallen from 120.55 to its current level of 116.50 in the same amount of time.
Today, traders will want to pay attention to the market reaction to the U.S. Non-Farm Payrolls report, set to be released at 12:30 GMT. Some analysts are forecasting a return to risk taking should the report come in above expectations. While this could potentially happen, most are skeptical that this would translate into serious gains for the Euro. Best case scenario, a return to risk sentiment would mean that Dollar and Yen gains would be slowed down against the single currency.