Monday was a positive day for the euro across the board, as it extended gains against the US dollar and moved over a cent against sterling in the morning. Impressive IFO German sentiment data, released at a figure of 108 in comparison to the forecast figure of 107.2, ensured that the single currency could enjoy its highest gains against the US dollar in two weeks.
Finally, the Greece scenario takes a backseat; formal talks between Greece and its creditors on a long-term bailout package began last night – these were expected to begin on Friday, but were delayed due to an agreement about where to have the meeting. Greece must repay over €3 billion to the ECB before the 20th August.
We expect slightly less important consumer confidence data from Italy today, but other than this release, it is likely to be a quiet day for the euro, which will no doubt be welcomed by many.