Tuesday was a mixed day for the euro against sterling. It did strengthen against the other major currencies as the euro was always positively influenced by another sell-off in the 10 year German global bond market. The main underlying theme for the single currency remains Greece, and the Greek government is believed to have borrowed €650m from its International Monetary Fund (IMF) holding account to meet the debt interest payment. A Greek official said on Tuesday that the reserves the government used to pay this bill has to be replenished in the IMF account in “a matter of weeks”, which could be a worrying sign for the eurozone.
Today we have German consumer price inflation early before Eurozone growth and Industrial production data is released at 10am. Overall these data releases are expected to paint a positive picture as to what is happening in the Eurozone.