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Following a short-lived rally, the Euro’s gains have been capped as investors await an Italian sovereign debt auction which will be held later today; there is a growing concern among investors that the third largest economy in the Eurozone may need some external support.

The Euro moved lower but remained range-bound during the Asian trading session, as investors hold their positions ahead of the upcoming Italian sovereign debt sale and this weekend’s critical Greek vote, the latter of which will likely shape the Eurozone’s future.

The EU may have voted to inject up to 100 billion euros into Spanish banks, but the increase in Spanish and Italian bond yields on Monday indicates that investors still doubt the success of the Spanish bailout plan.

Analysts say that the Euro could see its single largest daily rally today as investors’ relief over Spain’s request for assistance to aid its banking sector grows as markets in Europe and then North America open later today.

Thursday ended up being a disappointment for investors who were awaiting word from Fed Chairman Ben Bernanke that they intended to provide additional stimulus to shore up an economic recovery that was in danger of losing its momentum.

The Euro continued to firm against the U.S. Dollar in Asian trading on Thursday, boosted by growing hopes of a more accommodative bias from some members of the European Central Bank and the U.S. Federal Reserve suggesting that the central banks might provide additional stimulus in the months to come.

The Euro continued to mark small gains as investors’ risk appetite increased following the earlier report of unexpectedly good Australian growth Nonetheless, Euro-Dollar traders remain wary ahead of tomorrow’s meeting of the European Central Bank’s policy setting committee.

The Euro continued to extend yesterday’s gains and marched to a 1-week high in Asian trading as sellers pared their huge bets ahead of a G7 conference call.

The problems in the Eurozone are significantly overshadowing even the dismal jobs report out of the U.S. and the Euro is under considerable pressure as a result.

The Australian Dollar moved lower against its U.S. counterpart following the release of PMI data from China which provided more evidence that their economy is slowing beyond the government’s intentions.

As Spain’s woes grow, the common currency Euro is set to post its largest drop against the U.S. Dollar in eight months. Bond yields on Spanish sovereign debt once again surged upward, striking a 6-month high and widening the differential between Spanish debt and German bunds.

The Euro struck a new 2-year low in Asian trading as investors’ concerns over rising borrowing costs for Spanish debt, and indeed, the Spanish banking system, are weighing significantly.

Even as Greek worries take a backstage, investor concerns over Spain’s banking system are keeping the Euro close to a 2-year low versus the U.S. Dollar, as yields at the most recent Spanish debt auction rose to near 6.5% for 10-year benchmark debt, edging closer to the 7.0% threshold which analysts consider unsustainable over the long term.

A recently conducted poll in Greece is giving rise to new found hope that the country may as yet pull off a miracle and agree on the austerity measures which will allow them to stay in the Eurozone.

The Euro continues to be stuck close to a 2-year low against the U.S. Dollar as investors consider yesterday's German manufacturing data which suggests that not even the Eurozone's economic powerhouse can escape the debt crisis' tendrils.