The euro gained on Monday as Germany and Greece met for talks and EU PMI data is released.
Germany’s chancellor Angela Merkel and Greece’s prime minister, Alexis Tsipras met on Monday to discuss the Greek plan for repayment of existing bailout funds, an extension to repayments and a new injection of cash into the Greek economy. However, both were reticent to give out information after the meeting and adamant that details of the rescue programme were not part of the discussions. Merkel is quoted as saying that there is an ‘appetite for cooperation,’ adding, “We want Greece to be strong economically, we want Greece to grow and above all we want Greece to overcome its high unemployment.”
In the meantime, Mario Draghi president of the ECB, gave equally positive statements regarding the European Central Banks’ quantitative easing programme, saying that “growth is gaining momentum” even though many analysts believe that the current unemployment rate in Europe, which currently stands at 11.2%, is here to stay.
Tuesday sees economic data from both Germany and France, with Manufacturing Purchasing Manager's Index (PMI) reports. Both countries have forecasts above the previous figure however in France the expected figure of 48.5 is still below the pivot index figure of 50, indicating contraction. The last time the French PMI was over 50 was in May 2014.
Germany’s PMI figure, also reported Tuesday, is more positive with a forecast of 51.5 indicating expansion and a bullish position for the euro. At present, the German PMI stands at 51.1, a level that the country has sustained since December 2014 when it rose from 49.5.
EURUSD climbed from Monday opening at 1.08239 to open on Tuesday at 1.09432. Manufacturing Purchasing Managers Index for Europe is also reported Tuesday and is expected to increase by 0.5 to 51.5 showing expansion in the Eurozone overall.
MT4 Chart: EURUSD
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