Euro Falters as Spain and Italy Stumble

The euro fell against other currencies, with the market waiting to see decisive action from European politicians to prevent the spread of the debt crisis. Spain and Italy are experiencing increasing pressure on their long term debt, and rumors abound that the crisis may become contagious. With a lack of decisive action, the rumors may become more contagious than the actual debt problems. The euro was at $1.4060 Monday morning, down more than 1 percent against the dollar from the previous market day. The Euro was likewise trending downward against every other major currency. News last week of the downgrade in Portugal's credit rating aligned with more recent news of increased yields on Spain's bonds and record yield on Italy's bonds to drive down confidence in the Euro. An expected

between European financial ministers has not increased confidence in the euro, which may mean that the market has lost faith in the ability of politicians to effectively deal with the crisis. This continues a pattern

in the EU, and may indicate how the market reacts to discussion among finance ministers. Italy posted one of its worst market days ever last

, adding to fears in Europe and the United States. Whether the market reacts to this series of disasters in a larger crash remains to be seen.