The euro had a positive day across the board as it rose to two-week highs against the US dollar after China devalued the yuan for the second day running. Against sterling most of the damage was done in the early hours of the morning as the euro reached its highest point in almost a month as it dropped below the 1.40 levels. No data from either side had forced this move but general sentiment on sterling and the positive news on the third bailout for Greece will have been contributing factors to the strength of the single currency.
This morning we have the release of Consumer Price Index (CPI) data from Germany and France. Germany’s was set to increase from last month’s figure from -0.1% to 0.2% and France’s figures to worsen from -0.1% to -0.5%. As this is a measure of inflation, any major surprises could have significant impact on euro strength.