Forex Jokes : The rain rain rain came down down down...

The meteorologists predict that the situation will further deteriorate in the southern and southeastern parts of Germany. The Danube and Elba rose, and other rivers overflew their banks because of the incessant heavy rainfall. Bavaria has borne the brunt of the recent flooding. Several hundreds of its citizens were evacuated, the autobahns and railroad were drowned. The government has declared the state of emergency in ten towns, the residents of the small ones were transported to secure areas. The catastrophic large-scale surge of water has been recorded in Passau, which is surrounded by the Inn, Ilz, and Danube. The historical center was inundated, houses and basements were submerged, and the water level has reached 11 meters. The country's authorities have decided to involve the military to deal with the aftermath of the natural disaster. Angela Merkel has given the government directions to form  emergency services in order to help people suffering from the flood the most. The dwellers of potentially dangerous regions are asked to keep away from the rivers and take safety measures. The train traffic has been blocked, moreover, the railroad has been flooded, which has caused Deutch Bahn AG a modification of the train timetable and closure of most of risky destinations. The deluge made Prime Minister of Saxony Stanislaw Tillich cancel his visit to Turkey. The Germany's government is keeping the current state of affairs under the control. Thanks to the well-functioning system of notifications and operational work of the local municipalities heads, no victims have been reported yet.

Forex News: Euro rises on PMI data

The euro rose broadly on Monday after the manufacturing sector in the euro zone showed signs of stabilising, while the dollar fell against the yen as a slip in equities kept the safe-haven Japanese currency supported.

Analysts said both the euro and the yen could, however, trade lower in coming months if economic data from the U.S., like this week's non-farm payroll figures, pointed to a sustained recovery in the United States.

This could give impetus to the view the U.S. Federal Reserve would scale back its $85-billion-per-month stimulus programme and drive the dollar broadly higher.

The euro rose after data showed the slump in euro zone manufacturing had eased significantly in May.

The euro was up 0.3 percent against the dollar at $1.3025. Resistance was cited at last week's high of $1.3062. Reported option expiries at $1.3000 could keep the currency pinned to that level.

The dollar faltered against the yen as losses for the Nikkei steepened, eventually closing down 3.7 percent, while European shares extended losses on Monday.

The dollar was last down 0.4 percent at 100.10 yen, its lowest in 3-weeks. Support was cited at 100 yen and a large option expiry was reported at 101.3 yen.

"Dollar/yen has been held hostage to the broader risk-off environment," said Alvin Tan, currency strategist at Societe Generale. "Market is very short yen and that means that it is vulnerable to further short covering in the yen, meaning a lower dollar/yen...if risk continues to be under pressure this week."

Tan however expects the dollar to rise to 108 yen by the end of the year. The Bank of Japan's aggressive easing policy is likely to keep the yen under pressure, analysts said.

"The obvious support is at 100 and it will be difficult for it to break that unless stocks fall an awful lot more," said Takako Masai, head of forex at Shinsei Bank in Tokyo.

The dollar has so far managed to stay above the 100 yen level as investors remain bullish on the dollar after the last strong non-farm payrolls raised expectations that the Fed may start unwinding its massive stimulus programme.

The dollar added 1.9 percent in May against a basket of currencies, spurring currency speculators to raise their bets in favour of the greenback to the highest since at least June 2008.