While the sovereign debt crisis continues attacking 17-bloc euro zone nations and global development slows, investors, analysts and traders are watching the European Central Bank and the U.S. Federal Reserve for hints of intervention techniques. ECB President Mario Draghi last week said reducing borrowing costs in Spain and Italy is a task on his plate.
"We think there will be a reality check in time," senior economist Sarah Hewin with Standard Chartered Bank in London told Reuters. "Any action from the ECB is really reliant upon euro area governments first taking action. And indeed countries that require assistance will have to ask for a bailout, so there are many steps before you get to the ECB moving in to buy bonds."
Ben Bernanke, chairman of the U.S. Federal Reserve, is believed to be considering a third round of quantitative easing to spur the world's largest economic system.
Bloomberg reports the euro also fell in value against the Japanese yen in the aftermath of a report stating industrial production in Germany fell in June.