Unsurprisingly the euro’s movements this week were largely dictated by events in Greece. Eurozone leaders managed to reach an agreement on a bailout on Monday morning, and many assumed this would pave the way for a stronger euro – yet this did not materialise.
Speculation continued well into the week as to whether the Greek parliament would agree to the harsher austerity measures, and despite a successful “Yes” vote early on Thursday morning, the euro weakened across the board and hit fresh 7-year lows against sterling. Questions still remain about whether the Greek debt is sustainable, and how Greece will fund its banks in the short term.
With no notable data releases for the Eurozone tomorrow, once again Greece will take centre stage in dictating euro movements.