Yesterday we saw the euro gain marginally against the US dollar, following Greece’s passing of proposed reforms for a third bailout package. Poor UK Retail Sales data aided the euro, helping it to regain some ground against sterling. With Greece’s next payment due to the European Central Bank (ECB) by 20th August, Prime Minister Alexis Tsipras, is in a race against time to negotiate a deal and secure the required funding.
Today we see a busy morning of data releases from the Eurozone. The focus will be on the Flash Manufacturing Purchasing Managers’ Index (PMI) figures from France and Germany. With the month-on-month figures forecast to show growth, we could see the euro gain further against its peers. Any deviations from expectations, however, could cause euro weakness.