The EUR fell more than 1% against the U.S. dollar on Monday, led by a selloff in sterling and as uncertainty remained over a bailout package for debt-strapped Greece. As a result, the EUR/USD fell more than 100 pips before rebounding to its current level of 1.3520.
The pound fell to a 10-month low versus the greenback and was on track for its biggest one-day drop in a year after a poll showed increased risk that no party will win a majority in this year's general election, triggering fears decision-making would become stymied. Heavy selling pressure in sterling triggered a move lower in the EUR, which had been steady earlier in the global session on hopes Greece may be nearing a deal with EU governments to take more budget steps in exchange for some form of emergency aid.
Looking ahead to today, the most important economic indicator scheduled to be released from the Euro-Zone is the CPI Flash Estimate at 10:00 GMT. Analysts are forecasting this figure to be unchanged from previous reading. Traders will be paying close attention to today's announcement as a stronger than expected result may boost the EUR in the short-term. Traders are also advised to follow the Construction PMI figures coming out of Britain at 9:30 GMT, as these results may set the GBP's main currency crosses going into the rest of the week.