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According to Reuters, investors' flight towards safe-haven monies such as the yen and Swiss franc prompted the single currency to fall broadly on Monday (July 18th).
An emergency meeting of European Union leaders this coming Thursday has added to concerns that the region has a long way to go before putting the sovereign debt crisis behind it.
Speaking to the news agency, ING currency analyst Tom Levinson described how a cycle has been formed that would be tricky to break.
He explained: "It seems like a vicious circle with Germany's Merkel not budging on private sector involvement and the ratings agencies saying private involvement would constitute a selective default."
Meanwhile, Morgan Stanley's head of European FX Ian Stannard suggested the euro is generally in a "very vulnerable position", reported Dow Jones.
Posted by Greg Secker
