Euro slumps in Tuesday forex trading

Following three days of stability against the dollar, the euro fell to an eight-month low against the greenback during Tuesday's forex trading.

Concerns about the eurozone's periphery were still on the minds of many traders, particularly when it emerged that the bloc's overall debt levels increased in the first quarter of the year. Having sat at 92.7 per cent of GDP in Q4 2013, the first three months of this year since that figure go up to 93.9 per cent.

The situation in the east of Ukraine is also making investors in the euro edgy, not just because they'd rather place their money into safer options than the single currency, but also because further sanctions against Russia could have negative impacts on Europe, such as cutting off fuel supplies from the Caucuses.

The euro's drop in forex trading against the US was particularly pronounced because of data from the other side of the pair adding to the misery. Inflation and consumer prices saw expected gains, while home sales increased more rapidly than anticipated.