The German ZEW has softened for three consecutive months, partly on the back of Greek-related tensions. On the other hand, euro area industrial production has disappointed with a contraction of -0.4% in May from over previous month as reported by Eurostat but on YoY terms IP in the euro area increased 1.60% in May of 2015 over the same month in the previous year.
ZEW economic sentiment index in the euro area decreased to 42.70 in July of 2015 from 53.70 in June of 2015. But ZEW current condition in Germany has spiked up to 63.9 from previous 62.9.
While CPI (MoM) numbers in Italy are well in line with the consensus 0.2% which is unchanged from previous flash. Germany's CPI MoM and harmonized index of consumer prices are also well within forecasts at -0.1% and -0.2% respectively.
Against the backdrop of attempts by Greece and its creditors to erect the required building blocks for their 'agreement' on a third bailout programme, several euro area data releases will provide useful insights into the Q2 growth outlook for euro.
Euro against dollar gained almost to reach day's high so far at 1.1195 after euro zone leaders were able to reach unanimous agreement on a third bailout deal for Greece yesterday following lengthy weekend talks.
The Greek parliament should get ahead of new legislation by Wednesday to raise sales taxes, cut pension payments and enforce automatic spending cuts if the next budget misses its targets before negotiations on a third bailout program can begin. Parliaments in several euro zone countries will also have to approve any new bailout.
