020 7898 0500The euro strengthened throughout the day against sterling and gained ground slightly against the US dollar on Tuesday after an unexpected devaluation of the Chinese yuan affected the dollar’s overall performance and sterling weakened off throughout the day.
ZEW German business confidence came out as a mixed bag as economic sentiment fell to 25 when the forecast was 32, but current conditions came out at 65.7 which was better than the 64.3 forecast.
The single currency was also boosted by reports that Greece and its creditors had reached a longer term deal on what will be their third bailout. Greece narrowly avoided an exit from the Eurozone last month and now must repay €3.4 billion to the European Central Bank by the 20th August. Hopefully we won’t have a re-run of last months brinkmanship.
We shall see if the euro will keep on this encouraging trend today, with industrial production due from the Eurozone. This is expected to show a slight improvement from -0.4% to -0.2%, and any changes could have the potential to shake the euro from its current position.
