The euro's slip and slide against the U.S. dollar

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NEW YORK (CNNMoney) -- The U.S. dollar is getting a rise out of bad news in Europe.

Failure by European finance ministers to reach any notable agreement on solving the debt crisis sent world markets plunging and kept the euro on its volatile track.

"The EU Summit over the weekend did little to calm market fears, and the lack of urgency to address the sovereign debt crisis is likely to strengthen the bearish sentiment underlying the single currency as the fundamental outlook for Europe deteriorates," said Daily FX currency analyst David Song said, in a note to clients.

The euro fell 0.8% against the dollar Monday to $1.36, and is down 5% so far this month. Song said he thinks the euro could slide below $1.30 this year. In 2010, the euro fell to $1.18 mid-year, when European debt worries first started to unsettle investors.

Europe's debt crisis: 5 things you need to know

"[The] combination of continued eurozone financial stress as European policy makers continue to fail to get ahead of the crisis and the potential for the eurozone to slip back into recession" are creating "strong headwinds" against the euro, said Marc Chandler, global head of currency strategy for Brown Brothers Harriman.

He said that confidence in the European Central Bank has propped up the euro in the past. But investors are concerned that Greece might default on its loans in October unless it gets more bailout assistance, and this concern is undermining the value of the euro zone's core currency.

Some of the more dire forecasts suggest that European fiscal turmoil could doom the euro.

"There continues to be the fear that a default by Greece will trigger unforeseen and negative feedback like the demise of Lehman," said Chandler. "There is some concern that the euro zone itself may collapse."

On Sept. 29, the German Parliament will vote on the second Greek bailout.