Currency Note Euro

The euro drops despite bailout agreement

By Ricky Bean July 14th, 2015

The unusual patterns for the euro continued on Monday. When Greece vote “No” in their referendum, the currency strengthened – but when the Eurozone minister announced that an ‘agreement’ had been reached, the currency weakened significantly against the majority of currencies. Eurozone leaders finally hammered out an agreement on a bailout for Greece on Monday morning – although Athens has to agree to these terms via their parliament if Europe is to implement the bailout. Greece plans to raise sales taxes, cut pension payments and enforce automatic spending cuts before negotiations on third bailout programme can begin – and this all has to be finalised by Wednesday.

This will be the majority of the focus for the euro in the coming days, as well as industrial production data from Europe tomorrow morning.