020 7898 0500Tuesday was a fairly quiet day for the euro, besides a brief spike around lunch time when sources claimed the European Union (EU) could allow an extension to the Greek bailout. The euro has been significantly affected by the indecision around Greece’s future in the EU, and we expect rates to continue to fluctuate until a negotiation is finalised.
European officials are set to hold further meetings on the subject today and tomorrow; should there be talk or rumours of Greece remaining in the Eurozone then we should see the single currency benefit, but should negotiations begin to slow or become stagnant, which given the nature of politicians and all the vested interests involved is the more likely, this will be a positive for safer haven assets.
We do not expect to see any significant data releases that could affect the euro today.
