Fears that the deficit worries that have plagued Greece over the last few months may be spreading, caused the Euro to slide throughout the night. News that the Spanish government is taking over one of its smaller savings banks following a failed merger attempt underscores just how fragile the Euro-Zone economies really are.
Investors reacted to the Spanish news by getting rid of their Euro positions, causing the currency to take major losses against the U.S Dollar, among others. The EUR/USD has dropped over 100 pips since yesterday as a result. Similarly, the EUR/JPY fell from 112.34 last night, to its current level of 110.90.
Today, several economic indicators, such as the monthly Italian Retail Sales report and the European Industrial New Orders report, may slightly impact the single currency. At the same time, traders will want to keep in mind how weak the Euro-Zone is at the moment. Expect the Euro to continue to fall against its main rivals, especially if today's U.S Consumer Confidence report is released in-line with or above expectations.