Worries over the Greek economy caused the Euro to take some heavy losses in trading on Monday. The EUR/GBP pair dropped significantly and is currently trading around 0.8765. Against the Yen, the Euro has fallen some 40 pips over the last few hours and is currently trading around the 130.20 level. All being said, recent comments expressing confidence in Greece by the European Central Bank, helped the Euro keep its losses relatively modest.

Today, traders should carefully watch the German ZEW Economic Sentiment report, set to be released at 10:00 GMT. The report is a key indicator of German economic health and typically creates serious volatility.

Last month, the report caused the Euro to take some heavy losses, especially against the Dollar. With analysts predicting a similar figure this month, it is possible that the currency will continue its downward trajectory in trading today. On the other hand, if the report comes in better then expected, the Euro might be able to recoup some of it recent losses.