The euro set new 3 month low against the dollar as Greek politicians struggled to form a new government, fueling concern the nation will leave Europe’s currency union.

The euro fell as Spain’s 10-year bond yields climbed back above 6 percent.

Alexis Tsipras, whose Syriza party placed second in the Greek elections on May 6, said he would forge ahead with plans to form a coalition government of left-wing parties after he was handed the mandate by President Karolos Papoulias. Syriza is opposed to Greece’s European Union-led financial bailout.

Antonis Samaras of New Democracy and Evangelos Venizelos, of Pasok, rejected the ultimatum from Tsipras to send a letter to the European Union revoking their written pledges to implement austerity measures by the time he meets them today. Another election may be held in June if politicians fail to form a governing coalition.

EUR/USD: during the most part of the european session the pair was limited $1,2960-$ 1,3000. Later the pair decreased below $1,2950.

GBP/USD: the pair fell below $1,6100.

USD/JPY: the pair overcome support in Y79,60 area then decreased in Y79,40 area.

US data start at 1400GMT with wholesale inventories data and then at 1430GMT with the weekly EIA crude oil stocks data. At 1600GMT, Philadelphia Fed President Charles Plosser speaks at the Bank's conference on "Reinventing Older Communities." The US also sells new 10-year notes on Wednesday.