The EUR tumbled yesterday when the S&P group published their ranking downgrade to Greece and Portugal. Greece payment is due on 19 May, and Germany has reassured that the EUR will not collapse because of Greece. On the other hand, they continue to raise difficulties over a complete aid package to Greece.

UK elections coming in less than two weeks may add some volatility to the pair. Investor fear of a weak government with limited power may shake things up if there is belief that important economic decisions cannot be made by central authorities which would direct the UK economy out of recession.

The EUR/USD was trading lower following the closing of the New York session when the pair opened slightly higher at around 1.3200. The EUR/USD is expected to test the 1.3200 level later today, any failure to cross it would signal further decline for the pair. The GBP/USD also improved since yesterday closing and is currently little changed at 1.5268.