Euro crosses $1.11against USD on Greek deal

The euro keeps on surfing on the wave of Greek agreement optimism, reaching fresh August highs while completely shrugging off the risk-off hit from China.

The European currency ignored the risk-off punch administered by the second round of Yuan devaluation by the People's Bank of China. The CNY suffered the biggest two-day drop since 1994 after the intervention.

The euro gained primary support from the agreement on Greece's €86 billion bailout. Following the surprising move by the PBOC in the previous session, China's central bank sent another shockwave during today's Asian session, underlining the risk-off sentiment omnipresent on global capital markets.

Moreover, the continued easing programs from the Bank of Japan and the European Central Bank, which has seen the CNY strengthen against both their currencies respectively, is undermining China's export competitiveness. Exports to Japan have declined 10.5% and exports to Europe have declined 2.5%.