Tuesday was a brilliant day for the euro, as it hit session highs against both sterling and the US dollar thanks to the news that Eurozone consumer prices increased for the first time in May since December. This was backed up by renewed hopes for a breakthrough in the Greek debt negotiations – giving a large boost to the single currency. The pressure still remains though, as cheaper oil prices continue to have a large impact on inflation; energy prices fell by 5% from last in April.
Today, on the data front, we have Purchase Managers’ Index data released from the Eurozone at 9am, coupled with European retail sales at 10am; this figure is forecast to improve to 2% in comparison to last month’s figure of 1.6%. But the main item on today’s agenda is the presentation by Greece’s lenders of its new proposals for lending Greece more money and it is understood that these new proposals are very tough which could cause problems for the Greeks back home. So the Euros time on top could be short lived.