After a choppy week, the euro remained relatively steady throughout Friday. French and German Flash Manufacturing Purchasing Managers’ Index (PMI) data were reported to be lower than forecast, but their effects on the euro was muted.
The key highlight of the week was the Greek government passing the reforms attached to their third bailout package. Today we expect negotiations to begin between Greece and its creditors ahead of 20th August, when the country is due to repay €3.4 billion to the European Central Bank (ECB). Depending on the outcome of these talks, we are likely to see euro fluctuations.
On Thursday Preliminary German Consumer Price Index (CPI) data is released, a measure of inflation. Following on from poor manufacturing data released from Germany last week, it will be interesting to see the outcome of this inflation data.