On Tuesday the euro made ground during the morning but weakened off again as the afternoon progressed, with the Consumer Price Index data coming out as expected – it had limited impact. The strength in the middle of the day came due to the European finance ministers approving Greece’s reform program, confirming a four month extension of the country’s bailout agreement. You would hope that the politicians will use the four months wisely but often politicians defy logic and I would expect come the end of June there will be a mad dash and lots of brinkmanship to sort out the Greek debt problem. Hopefully we will be proved wrong by the politicians.
There are very little data releases today so we should expect a slow pace from the single currency.
The main story that should take centre stage now in the Eurozone is how effective will the European Central Banks programme of quantitative easing be. This starts in March with the hope that it will boost the Eurozone economy.