Eurozone Finance Ministers met yesterday afternoon to evaluate the progress made by Greece to fulfil their Bailout scheme conditions, and the meeting was far more positive than many had anticipated. It is likely that Greece will require a far smaller loan from international lenders than the €86 billion originally expected due to its finances becoming more stable. This was backed up by the European Stability Mechanism (ESM) receiving a prompt payment of an expected €2 billion payment into the fund yesterday.
However, this bailout loan has caused disputes amongst its EU officials and International Monetary Fund (IMF) creditors and concerns have been mounting that Europe could soon see a new financial crisis. With the German elections due in September, German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde will meet tomorrow to discuss the matter further. Although yesterday’s meeting was seen as a positive step, it is still very early days in a long process and if positivity does not continue I would expect the Euro to suffer as a result.
This morning is set for a whole host of economic data released for the Eurozone, including Services and Manufacturing data will be announced by Markit at 9am. Manufacturing data is expected to show a slight slowdown, and if this is the case this could provide another great opportunity for Euro sellers.
On Wednesday, Consumer Price Index figures for January will be released at 10am. CPI a key indicator of Inflation, and month on month figures for January are expected to show a sharp downturn since December. If Inflation is reported negatively as expected, we could see the value of the Euro fall, making it cheaper to buy Euros after this release.
Please get in touch with one of our expert dealers here at Foreign Currency Direct who can ensure that you purchase your currency at the best possible time. Call us on 01494 725 353 or email me here to get a quote.
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