The euro was lower in yesterday's trading despite strong economic data from the euro zone. Yesterday's flash PMI for manufacturing was reported higher at 59.0 from 57.3, a new high. Flash service PMI increased to 57.2 from a previous reading of 55.9. The German Ifo survey was also higher at 111.2 from 110.3.

Also a potential impact on Germany was the defeat of German Prime Minister Angela Merkel's CDU party in the Hamburg Elections. This will reduce the size of the CDU representation in the upper house of parliament and is a sign of the weakening grip Merkel and the CDU have on Germany's political moves. This could have further implications down the road as elections in six other states will begin next month.

Due up on the economic calendar from Europe is German consumer data and British Public Net Borrowing.

The EUR/CHF continues to weaken after failing to move above its 200-day moving average. A breach below the 1.2900 support could trigger further losses to the 1.2770 level. Resistance is found at Friday's high of 1.2990.