The euro fell on Monday trading after the G20 refused boosting the IMF fund and said euro area economies have to expand their firewall first, thereby putting more pressure on euro area leaders ahead of an EU summit this week.
U.S. Treasury Secretary Timothy Geithner said there is broad agreement that the IMF cannot substitute for the absence of a stronger European firewall and the IMF cannot move forward without more clarity on Europe's own plans.
Germany is now under mounting pressure to combine both powers of the remaining 250 billion euros in the European Financial Stability Facility (EFSF) and the 500-billion-euro European Stability Mechanism (ESM), due in July, to have a total of 750 billion euros; the thing which was opposed by Germany in more than occasion.
Moreover, eyes today will track German Parliament as it is set to vote on approving a second bailout for Greece, where Merkel will start the debate at 14:00 GMT then the voting will take place later in the day.
Although, the law is expected to be passed by the German Parliament, Merkel is predicted to rely on opposition amid disputes in her centre-right coalition.
Meanwhile, the EUR/USD pair is trading around 1.3400 after it fell from a high of 1.3479, while the day's high was recorded at 1.3393.
The trading range for the week is expected among the key support at 1.3625 and the key resistance at 1.3050.
The U.S. dollar, on the other hand, rebounded a against a basket of major currencies after dropping sharply over the past two sessions as it rose to 78.55 after touching a high of 78.60, according to the six-currency gauge the dollar index.
Against the yen, the greenback dropped from 9-month high to trade around 80.70, where the day's high was seen at 81.64 while the low was touched at 80.29.
The trading range for this week is among key support at 79.50 and key resistance now at 83.00.
Moving to the British pound, it fell slightly versus the greenback following the general sentiment in the market which is fueled with concerns after the G20 rejection to boost IMF resources.
Meanwhile, the GBP/USD is trading around 1.5875 after touching a high of 1.5900 and a low of 1.5844, where the trading range for this week is among key support at 1.5400 and key resistance at 1.6170.