Euro struggles as Greece fails to extend its bailout package

It was a another painful day for the euro yesterday, with the single currency falling to fresh 7-year lows against sterling, whilst falling to the lowest level against the US dollar all week. The euro continued its decline as it was reported that Germany rejected a proposed bailout extension request from Greece. Athens faces the prospect of running out of money by the end of the month should a deal not be agreed. The European Finance Ministers meet again today and reports suggest that the German leaders are closer to agreeing on a deal. The European Commission had welcomed the bailout extension request earlier in the week, as it was deemed a reasonable compromise and would therefore bring stability to the Eurozone.

To round up the week, there will be Purchasing Managers’ Index (PMI) data from all of Europe, forecast to improve on last month’s figure of 52.3; but, all the focus will be on the potential Greek bailout package.