The EUR fell in early trading yesterday, on concerns about how Greece will service its debt, while the dollar and the yen gained as drops in equity markets led investors to cut positions in riskier currencies. Concerns remain about how the deal will work in practice however, and the premium demand to buy Greek government bonds rather than German bonds rose further.
Investors may look for the unusual price volatility to continue in EUR/USD as the pair attempts to stabilize and find new support and resistance lines. Large price jumps such as these are not common place and present terrific opportunities to take advantage of the price swings for profitable gains.
Looking ahead to today, the most important economic indicators scheduled to be released from Europe is the German ZEW Economic Sentiment at 9:00 GMT. Traders will be paying close attention to today's announcement as a stronger than expected result may boost the EUR in the short-term.