The Eurozone still has some significant problems and business confidence is stuttering. This was highlighted on Friday as the euro weakened against its major peers due to disappointing news from German businesses. The data from the IFO Index weakened to 108 in July from 109.7 in June and was worse than the forecast 109.4. One of the key reasons is the situation in Ukraine and the effect it is having on business morale on Germany and on the euro. The Eurozone could see more difficult times if tougher sanctions are imposed on Russia, and if the European Central Bank continues its aggressive stance on their monetary policy.
This week we will see business and consumer confidence data on Wednesday and unemployment figures and inflation data out on Thursday. Best expectations is for the data to hold steady so any shortfall will probably undermine the euro.