Forex: Monday’s review

Yesterday the euro fell for the first time in four days against the dollar as Greece's coalition failed to reach an agreement on reducing the cost of 11.5 billion euros ($ 14.7 billion), while renewing fears that the debt crisis will continue to worsen.

The single currency fell against most of its 16 major counterparts ahead of the German decision on the rules of the country's participation in the fund saving Europe, which will be announced on September 12.

The Australian dollar fell after a report showed that Japan's economy expanded in the second quarter to two times less than originally expected, thus causing a decline in demand for riskier assets.

Greek Prime Minister Antonis Samaras to meet with officials from the euro zone, the European Central Bank and the International Monetary Fund.

The leader of the Democratic Left Party leaders Fotis Kouvelis, whose party is one of three in the coalition government, said that no decision on the reduction of costs, and that the poorer Greeks must be protected against austerity measures. The three leaders agreed to meet again on September 12, two days before the euro zone ministers will gather in Cyprus to discuss the situation in Greece.

The dollar strengthened against most major currencies in anticipation of the report of the Ministry of Trade, which is expected to show that the U.S. trade deficit widened to $ 44.4 billion in July from $ 42.9 billion in June.

Pound halted a three-day decline against the euro amid concern that the debt crisis in the region will deteriorate, and by signs that the UK economy out of recession. Sterling rose against the euro, even after a report showed that business confidence fell to a record low in August.