Greek uncertainty makes it difficult for the euro

The euro had a difficult start to the week, as a lack of progress on the Greek bailout terms increased pressure on the single currency. We expect further tough conditions for the euro as the situation in Greece continues to affect market confidence. The country remains in the Eurozone for now, but potentially not for not much longer. Despite this, any positive announcements on Greece could also see the euro strengthen – we expect a fairly volatile market over the coming days.

Looking to today, we have the wholesale price index from Germany, and Italian industrial production figures – which are forecast to improve from -1.8% to -0.8%.