The euro made early gains against the US dollar and sterling on Tuesday as uncertainty over the Greece debt negotiations continued to muddy the waters for the single currency. Athens presented a new proposal to the European Commission yesterday, again renewing hopes for a breakthrough that would finally unlock additional funding before the country runs out of its cash reserves. However, with Greece good news always seems to be coupled with bad – and the Greek economy moved back into a recession, shrinking 0.2% in the last quarter.
On the data front the growth figures were largely ignored by investors as they came out exactly as forecast at 0.4%. By the end of the day the euro had lost ground against the US dollar and sterling.
This morning we have industrial production data from France, but we expect today to be very quiet day in terms of the data for the Eurozone.