The dollar fell against most major global currencies on Monday amid growing concerns regarding the US ‘’fiscal cliff’’ that could send the country into a recession next year. At the end of this year, tax breaks are set to expire and at the same time cuts to government spending are scheduled.
In Europe Greek parliament approved a budget for next year, days after approving EUR13.5 billion in spending cuts and tax hikes needed to appease creditors. European and multilateral creditors required a new budget in order for Athens to tap fresh bailout money. European finance ministers are due to meet later in Brussels on Monday, though they may spend time reviewing Greece's commitment to austerity. Market participants, however, are not expecting European Union officials to disburse immediately the EUR31.5 billion fresh rescue funding to Greece.
In Japan, official data revealed the economy contracted by annualized 3.5% in the third quarter of this year, which weakened the yen against the USD.
Markets in the U.S. and Canada will be closed on Monday for national holidays.