The market saw some optimism at the start of the week when European leaders pledged a resolution to address the ongoing debt crisis in the region, according to Reuters.
German Chancellor Angela Merkel met again over the weekend with French President Nicolas Sarkozy with hopes of hammering out a course of action to address the burgeoning issues with Greek debt, along with the growing number of banks that have been exposed by the crisis.
Reuters reports that the euro could see its largest gains since mid-2010 after strong early trading in light of the news from Europe's two largest economies.
"Certainly Merkel and Sarkozy pledging a plan to support European banks by November helped," Marc Chandler, global head of currency strategy at Brown Brothers Harriman, told Reuters. "But at the end of the day Greece still has problems."
The issue has already forced local action on a smaller scale. Businessweek notes that France and Belgium look set to end the cross-border bank Dexia SA, as Belgium announced plans to buy out its local branch for around €4 billion.