So far, there's little indication the financial crisis is subsiding.

The euro and British pound fell against the dollar, and money market rates climbed early Monday in Europe as banks hoarded cash.

The euro and British pound fell about 1 cent versus the dollar to $1.3610 and $1.7568, respectively, early Monday as traders sensed both the European Central Bank and Bank of England, along with national governments, will have to take monetary and policy actions to address the crisis.

The London interbank offered rate, or LIBOR -- the rate banks charge each other for overnight dollar loan, increased 37 basis points to 2.37%. The Euribor, a similar rate for the euro, rose 1 basis point to 5.35%, an all-time high.

Currency Trader Andrew Resnick told BloggingStocks Monday, currency, credit and stock markets in Europe all indicate the financial crisis will impact many of the economies in the euro zone.

"Germany's decision to guarantee all private German bank accounts kind of spooked the currency market, and drove the euro and pound lower. It's a good, defensive action, but it prompted people to ask 'how deep is the problem in Europe?'" Resnick said. "We're going to need more action to address the crisis from both the European Union and the central banks of Europe to boost liquidity."

European governments in the European Union Saturday pledged to work with one another, but did not adopt a bailout-rescue package akin to the U.S. Treasury's rescue package passed by the U.S. Congress and signed by President Bush last week.

Resnick said currency and credit markets "were sort of counting on European leaders to pass a rescue package of at least $100 billion" over the weekend. France and counterparts from Germany, Britain and Italy vowed to prevent a Lehman Bothers-type of bankruptcy in Europe, but they did not offer a sweeping American-style bailout package.

"We're going to need a more aggressive, coordinated effort not only in Europe, but internationally among the major central banks to maintain adequate liquidity in the system," Resnick said. "That would be a big step toward restoring confidence in the system and pointing banks toward normal lending policies."

Monetary / Economic Analysis: Clearly, more liquidity is needed in Europe: look for the ECB, Bank of England and Swiss National Bank to lead the charge, while the E.U. sets up a fund to assist companies / institutions that are too big to fail. Like the U.S., the E.U. will need to use traditional and non-traditional tools to keep the system liquid.