The euro began to toil yesterday, moving steadily lower against other major currencies, as the deadlock between Greece and its lenders continued.
Poor data from Germany then exacerbated the situation. The ZEW German Business Confidence data was much lower than forecast – encouraging further weakness for the multi-national currency throughout the day, particularly against sterling. The ZEW economic expectations index also dropped to 31.5 from 41.9 last month, and was much worse than the forecast 37.1. The other news from the Eurozone yesterday was that the yield on Spanish, Italian and Portuguese bonds have jumped higher, as the prospect of a Greek default began to set in.
At 10am this morning, we have Consumer Price Index data from the Eurozone – and this is forecast to stay the same as last month’s figure of 0.2%.