EUR/USD came under pressure after German finance minister Wolfgang Schaeuble said Greece will need a third bailout. Mr Schaeuble made it clear that the Athens administration requires additional funds and a lower rate of interest, and not another write-down of its outstanding debt. The comments from Mr Schaeuble have brought the eurozone debt crisis back into the limelight, and if this persists we could we could see the euro lose more ground against the dollar.
We are not expecting any economic updates from the eurozone today, but US existing homes sales are out at 3pm (London time). Economists are expecting a reading of 5.15 million, and if the report falls below expectations the euro could pull back some of its lost ground.
The main focus of the day will be the Federal Reserve minutes at 7pm (London time) tonight. There is a possibility the Fed could trim its quantitative easing (QE) scheme, starting next month, and if this happens we may see the euro drop against the dollar, as tapering QE would strengthen the US currency.