Greece will continue to stay in the headline this coming week. Tomorrow Eurogroup meetings will start in Brussels and certainly in focus will be how the E.U. decides to handle what is turning into a hostile negotiation.
On Tuesday the ZEW Economic Sentiment reading will come from Germany and the rest of the continent. Later on Tuesday the United States will see the Empire State Manufacturing reading.
The EUR will enter trading this week having held on to its value, though it continues to skate just above its lowest technical realms.
Simply put there seems to be little impetus for the EUR to pick up strength in any great fashion and traders will continue to be tempted to test its apparent weakness.
The Greek saga is not about to vanish and will likely escalate over the next few weeks until some type of working agreement can be formulated.
If the ECB and E.U. should come to terms with Greece and create a less austere payment term structure do not expect the EUR to emerge stronger. While lows may show that ‘bad news’ for the Single Currency has been digested, Digital Markets Advisor still expects further indigestion before ‘a cure’ can be found.