The euro had a difficult day on Wednesday. A particular focus for the single currency is the search for a deal with Greece on its debts and knowing how soon it will be reached. The struggles of the euro have been a great indicator for market confidence across Europe. At the start of this year the euro was close to €1.29/£1. In the space of six weeks it has weakened by nearly 5% against sterling evidencing how badly the euro is faring and how uncertainty over Greece has undermined it. Yesterday’s meeting of European Finance Ministers was inconclusive (at best) and another meeting is scheduled for Monday. As noted previously I am sure this will go to the wire as politicians love to be centre stage and brinkmanship is the order of the day.
In the short-term on Thursday, there are meetings taking place for the European Union, and Quarter Four 2014 growth figures for the Eurozone will be released on Friday, but we do not expect this to show any improvement on Quarter Three figures.