Currency Note Euro

Euro bounces (a little)

By Smart Currency February 4th, 2015

Yesterday the euro gained across the board, particularly against sterling and the US dollar, the strongest we have seen in 10 days against sterling. The general outlook for the Eurozone is looking better as Greece’s new government is taking a softer approach in terms of negotiating its new bailout agreement, which has helped the fears of Greece leaving the bloc. There is always a twist, however, with the euro, as the Producer Price Index fell to -2.7%, down from last month’s figure of -1.6%.

Today we have the Purchasing Managers’ Index (PPI) and retail sales data released in the morning. PMI data is forecast to improve from last month figure but retail sales data are expected to decline to 0.2%, from 0.5%. Any deviations from expectations could cause significant movement for the euro.

And the Greek saga continues with the Greek Finance Minister meeting his German counterpart today. Given that they are at the two extremes in these negotiations it could make for some interesting rate effecting headlines. As mentioned this saga is set to dominate the news flow in February as we approach the end of February deadline.