LONDON (SHARECAST) - The euro retreated against the dollar and the yen, for a sixth consecutive day, amid renewed worries about the Eurozone sovereign debt crisis. The euro tracked a slump among European stocks on increasing concern about France and Germany's banking system. Sentiment towards Europe's fragile banking sector was knocked after a US Federal lawsuit was filed against 17 banks over the sale of home mortgage-backed securities during the housing bubble. Deutsche Bank CEO's warning of risks for European banks also rattled market confidence on Monday. The German bank's outgoing chief executive, Josef Ackermann, said that some European banks would go bankrupt if they were forced to “mark to market” their portfolios of sovereign debt. In the UK, markets digested another gloomy snapshot of the UK economy. Growth in the services sector slumped as activity in Britain’s biggest sector fell the most since August 2001. The euro traded at $1.4067 from $1.4128 and the single currency the euro fell to 108.17 yen from 108.56 yen. The greenback rose to 76.90 yen from 76.85 yen. US markets were closed Monday for the Labor Day holiday.

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