The cost of borrowing overnight funds on international money markets remained close to central banks' targets on Monday thanks to continued liquidity injections but lending was virtually non-existent across all maturities.

The euro slid to a 13-month low against the dollar Monday after European leaders came away from a weekend meeting without announcing a bailout plan for the continent's troubled financial sector.

China's Ping An Insurance Co. said Monday it will record a $2.3 billion loss on its stake in troubled European bank Fortis NV, in the biggest blow yet to a Chinese institution from the global credit crisis.

The Euro came under heavy selling pressures during the overnight Asia session to break below 1.36 as the Hypo Real Estate bailout plan failed over the weekend. Indeed, selling pressures for the Euro increased as the Sentix Investor Confidence index failed to meet expectations, and pushed the currency to touch an intraday low of 1.3543.against the U.S. dollar.

Student's Question: I placed a trade based on SMA 10&20 crossover which was confirmed with previous bearish engulfing pattern signal. Stop loss placed above SMA.

I have been holding a bearish outlook for the EURGBP throughout the month of September, and the pair has fallen through key support level over the past few weeks.

AUD/CAD is our Trend for Today

The Euro gapped down 112 pips at this week's trading open, opening at 1.3690 against the US Dollar versus Friday's closing price at 1.3802. With Friday?s disappointing Non-Farm Payrolls data and market expectations of dramatic interest rate cuts from the US Federal Reserve, why is the US dollar pushing higher?

Non-Farm Payrolls data disappointed and the markets are pricing in dramatic interest rate cuts, so why is the US dollar pushing higher? The answer, it seems, lies in broad-based global demand for long-term US government debt.

The market seems convinced that the Federal Reserve will cut interest rates at their next meeting on October 29th. The question, it seems, is by how much. According to pricing of Fed Funds futures contracts, traders are pricing in an 84% chance that the Fed will slice 50 basis points off borrowing costs to put the benchmark lending rate at 1.50%.

Germany on Sunday guaranteed all private bank accounts and negotiated a 50 billion euro bailout deal for Hypo Real Estate AG as Europe's second largest economy sought to ward off financial crisis.

The downturn in the global financial market paired with fading risk sentiments has triggered bearish price action for the New Zealand dollar, but mounting hopes for the U.S. bailout package has certainly helped to calm fears, and led the high-yielding currency to bounce back at the end of the trading week.

The focus in Australian Dollar trading falls squarely on the Reserve Bank next week, with expectations calling for Glenn Stevens and company to reduce borrowing costs by 50 basis points.

Despite improved growth the Canadian dollar fell over 500 points against the dollar as global growth declines. The anticipated decline in demand for raw materials has led to commodity prices dropping, which is expected to weigh on the Canadian economy.

The focus on financial crisis has been magnified for the UK this past week - and the close look may mean a new leg of declines for the British pound. A quick recap of the data this past week shows that mortgage approvals hit a record low, second quarter housing equity withdrawals contracted for the first time in nearly a decade and the third quarter BoE credit conditions survey reported the lending environment would only worsen in the near term.

A fundamental outlook for the euro should oddly enough begin with a look to the technicals. This past week, the pair cleanly broke below a dominant, rising trendline that began back in January of 2002 .