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Strong EU #PMIs help the #EUR against the #USD

Yesterday evening Angela Merkel, the German chancellor, held a meeting with the International Monetary Fund, the French President, the European Central Bank and the European Commission, to put together a “final offer” to Greece. The conclusion was that “work must be continued with greater intensity” to achieve an agreement with Athens.

No official statement was issued after the meeting so the markets are unsure or whether they agreed to hardened their attitude or if they removed some of the red lines. Euro hasn’t moved since the meeting.

The US Dollar suffered yesterday morning following some strong Eurozone PMI’s from the manufacturing sector and one below-forecast US purchasing managers’ index. It recovered sharply when the second American PMI came in quite a bit better than expected after lunch.

Tuesday’s economic calendar opened overnight with a decision by the Reserve Bank of Australia to keep its benchmark interest rate at 2%. The other important data today is German unemployment, UK mortgage approvals and Eurozone inflation.

There had been a suspicion that the RBA might either surprise the market with another rate cut or warn of one to come. It did neither and the Aussie responded positively, adding a cent and a half to become the top performer over the last 24 hours.

The provisional Euroland CPI reading for May is pencilled in at 0.2%, its highest level this year, but should not have any real impact on the Euro as investors will be more interested in what the Troika leadership might have to say about last night’s summit in Berlin. Will no news be interpreted as good news?