Thursday was another good day for the euro as it strengthened against both sterling and the US dollar. GBP/EUR has now fallen below the 1.40 level, reaching a 1-month low, and the single currency was able to reach its highest rate in two months against the US dollar, as it was confirmed that a US interest rate hike would be on hold until at least Q4 2015. With the deal for Greece ironed out and details finalised, the euro seems to have stabilised for the time being.
Overnight, the Greek Prime Minister resigned and called for a snap election due to take place on September 20. This plunges the Greek situation back into uncertainty as we wait to see if a strong government can be formed.
Early this morning consumer confidence from Germany was released, expected to remain unchanged at 10.1. At 9am we have Purchasing Managers’ Index from Europe, expected to increase slightly from 53.7 to 53.8. In the afternoon, consumer confidence from the Eurozone will be the final release of the day, and this is expected to improve from -7.1 to -6.9. This plethora of data means we can expect a busy day for the single currency.