On Friday, the situation and general demand for the single currency remained under pressure over the ever-growing concerns about the Greek debt situation. The current bailout for Greece expires on 30 June, when Athens is also due to repay the International Monetary Fund (IMF) €1.6 billion.
The euro has weakened across the board and it is expected to remain unstable until Greece are able to reach an agreement. Interestingly, there has been discussion that Russia may well begin to finance Greece. However, on Friday the IMF Chief Christine Lagarde made it clear that if the payment due at the end of this month is not made on time, Greece will be declared bankrupt and would therefore be disqualified from receiving any further IMF funds.
The main focus for this week will continue to be on Greece, but there may well be a potential respite from Purchasing Manager Index data on Tuesday, or perhaps the German IFO business confidence data on Wednesday. Whatever happens, we expect to see a tough week for the single currency.