Although inflation data for the Eurozone was better than expected, deflation is still in play as the figure came in as expected at -0.1%. This, coupled with Greek Prime Minister Alexis Tspiras’s declaration that Greece’s debts need to be restructured, has seen the euro have its worst day for nearly a month against sterling, and falling further against the Dollar. The one ray of sunshine was that unemployment in the Eurozone has fallen to its lowest level since May 2012.
For the rest of the week there should be very little important data out for the Euro, barring manufacturing data released Wednesday. Therefore, the more influential manufacturing data releases from the UK and US may well have more effect on the Euro’s movement. If these are to show industry expansion as expected then it could undermine the euro.