The uncertainty surrounding the Greece bailout program has continued to influence traders' willingness to hold the EUR. Remarks made by Germany, regarding the best way to help Greece, sent the EUR down against the USD earlier yesterday. Other posts made by France helped lift it up from a daily low. The volatile pattern of the EUR/USD will remain at least until Thursday's European Union (EU) summit.
The EUR/CHF fell yesterday to 1.4230, which is an all time record low for the pair. It would be interesting to follow the Swiss National Bank (SNB) response, after previously making remarks that it would act to prevent further appreciation of its currency against the EUR. A strong CHF may hurt the Swiss economy by increasing the operating costs of Swiss companies.
Later today France (at 08:00 GMT) and Germany (at 08:30 GMT) should release Manufacturing and Services PMI reports. Better than expected results should lift the EUR against other major currencies, especially the USD. A positive German Business Climate report, published at 09:00 GMT, should also support the EUR.