Currency traders this week will focus on the bond market and in particular an auction of French debt.

Sales of German 10-year bonds on Wednesday and a French sale on Thursday will be the year's first tests of eurozone borrowing conditions, as a potential recession in the 17-nation bloc threatens to further roil debt markets. Italy, Spain and other heavily indebted members have found it increasingly difficult and expensive to lure buyers for new debt as the region's sovereign-debt crisis has dragged on.