Euro Reverses Earlier Gains

The euro took losses against several of its main currency rivals yesterday, as investor faith in the ECB's ability to combat the euro-zone debt crisis began to fall. The EUR/USD fell by close to 100 pips during European trading, eventually reaching as low as 1.2284 before staging a mild recovery and stabilizing at the 1.2300 level. Against the Japanese yen, the common currency fell by more than 90 pips to trade as low as 96.31. That being said, the euro was able to bounce back, and by the evening session was trading close to the 96.90 level. Turning to today, in addition to any announcements made by euro-zone officials regarding the region's debt crisis, euro traders will also want to pay attention to the British PPI Input figure, set to be released at 8:30 GMT. The indicator is forecasted to come in at 1.3%, significantly higher than last month's -2.2%. If true, risk taking may return to the marketplace, and the euro could receive a mild boost during mid-day trading against its safe-haven currency rivals.

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