Last week's Euro rally proved to be short-lived following today's decision by the Spanish government to take over one of the leading banks in Spain. The takeover reinforced investor doubts regarding the Euro-zone economies, and led to a drop for the single currency against its major counterparts. EUR/USD, currently trading just below the 1.2400 level, has dropped approximately 200 pips since last night. EUR/GBP has also seen a significant drop since last night, falling from 0.8700 to its current level of 0.8622.

Traders will want to pay attention to the U.S. Existing Home Sales report set to be released at 14:00 GMT today. Following last month's stronger than expected home sales figures, investors are waiting to see if the uptrend will continue. With analysts forecasting a strong home sales figure, traders will want to watch out for Dollar gains in afternoon and evening trading. That being said, should the figure come in below expectations the greenback may take some losses against certain currencies like the JPY and CAD.