On Monday, the euro was weak against the other major currencies as concerns over the conditions of Greece’s bailout extension kept investors nervous – despite the big news on Friday that the euro zone had approved the extension of Greece’s €240 billion bailout, removing, hopefully, the possibility that Greece would go bankrupt when its current bailout agreement expires on February 28th.
Europe’s biggest country, Germany, had some positive news with the business confidence survey release which rose for the fourth time in as many months. However, the 106.7 figure was below the forecasted 107.7, although a slight improvement on January’s 106.7, which helped to undermine the euro. Today we have more data for Germany, growth data which is forecast to be 1.6%, and for Europe as a whole, we have the Consumer Price Index, which is forecast to have fallen further to -0.6%. Deflation seems to be well entrenched in the Eurozone.