There was a fairly muted performance from the euro on Monday, but generally the currency weakened thanks to a continued lack of agreement on the economic reforms for bailout funds between Greece and its creditors. It certainly looks as though Greece is no closer to reaching an agreement with the rest of the eurozone and the International Monetary Fund (IMF) over reforms of the bailout funds, which creates a real fear that Greece could be forced out of the euro zone.
Producer Price Index data from Germany was released on Monday morning, coming out marginally worse at 0.1% – but the impact of this was very limited. Today there is more important data from Germany with the release of Germany’s ZEW business confidence data. An improvement to 55.5, compared to 54.8, is forecast as the German economy continues to be one of the key beneficiaries of a weak euro, reduced energy costs and the Eurozone quantitative easing programme.