It was a quiet day for the euro as it was almost unchanged against a strengthening US dollar and broadly weaker against sterling on Monday. The only real piece of news from the Eurozone was Greece’s move closer to a deal on a third bailout with its creditors, following talks over the weekend. Greece needs to secure a massive €86 billion ahead of the August 20 deadline to repay €3.4 billion to the European Central Bank (ECB); this would then finally alleviate some of the pressure that it is facing.
Today ZEW German business confidence data is released at 10am, which is forecast to improve from 63.9 to 64.4. Other than that we have Consumer Price Index (CPI) data from Italy – a measure of inflation, this is forecast to remain at 0.2% – this will take a back seat in comparison to the ZEW business confidence data. Any unexpected surprises to either could affect the euro’s performance today.