Euro strengthens against the US dollar, while Greek talks continue

The euro strengthened against the US dollar on Wednesday, but lost ground against sterling, thanks to a stronger looking UK economy. Late in the day the outcome of the latest US Federal Reserve meeting saw the euro strengthen further against the US dollar.

Concerns over the prospects of a Greek default also continued to worry the markets. The single currency remained, as always, on the back foot, thanks to the continuing deadlock between Greece and its lenders came no closer to a deal – despite the fast approaching deadline for Greece’s repayments to the International Monetary Fund (IMF).

Consumer Price Index (CPI) data came out exactly as forecast so this had virtually no impact on the markets.

It is a quiet day for the markets today with only minor labour costs data out at 10am.