The euro declined today as investors turned their attention from Greece to Italy and the situation there was bad enough to spur talks about spreading of the debt contagion across the Eurozone. Greek Prime Minister George Papandreou agreed to resign and let the unity government, formed by the ruling and the opposing parties, to make arrangements for getting the bailout. The news brought a little relief as now Italy may lose its leader. Italian Prime Minister Silvio Berlusconi said he’ll resist the pressure to step down, but Forex market participants remain concerned as the Europe faces not only economical, but also political challenges. All fundamental reports were negative today, including the worsening Sentix Investor Confidence, the declining Eurozone retail sales and the shrinking German industrial production. EUR/USD fell today from 1.3828 to the intraday low of 1.3680 before trading at 1.3759 as of 11:53 GMT today. EUR/JPY dropped from 108.11 to 107.41, while the intraday low was 106.84. The euro rallied recently, erasing bigger part of its losses, but currently slowed the rally and resumed its decline.