The euro remained under pressure on Wednesday, with the Greek government no closer to reaching an agreement with its Eurozone partners, and the International Monetary Fund (IMF) accessing the remaining bailout funds; this fuelled fears that the country could be forced out of the Eurozone. Previously, the single currency had climbed to its highest point in over a week against the US dollar, following some weak US economic reports, but the fallout from the Greek discussions along with stronger data from the US reflected poorly on the euro.
The single currency hit a month low against sterling also, as the Bank of England minutes were very much in favour of keeping interest rates where they are, some investors had been worried a cut in interest rates may have been on the cards. Consumer confidence data from the Eurozone figures were released, unfortunately coming out worse than expected at -4.6 (compared to the forecast -2.75).
There is a whole raft of data out today including German consumer confidence data and Eurozone Purchasing Managers Index (PMI) data which given yesterday’s change in momentum for sterling have the possibility of boosting sterling further if they disappoint.