The Euro to Pound Sterling and US Dollar (EUR/GBP/USD) exchange rate strengthened on Monday afternoon. This is despite the fact that the Greek Prime Minister failed to confirm his presidential candidate for the third-successive time which, in turn, meant that Greece now face a snap general election at the end of January. Both the Pound Sterling and the US Dollar, meanwhile, are subject to fluctuations in the currency market due to a distinct lack of domestic data to provoke volatility.
The Euro to Pound Sterling exchange rate is currently trending in the region of 0.7849.
The Euro to US Dollar exchange rate is currently trending in the region of 1.2190.
Euro (EUR) Exchange Rate Gains despite Greek Snap Election
After Greece’s parliament failed to confirm Stavros Dimas as the presidential candidate, most industry experts were expecting the shared currency to slump across the board. However, traders seem to have taken the news out on Greek bonds rather than the Euro.
‘The initial reaction has been reserved for Greek assets rather than the Euro,’ said John Hardy, head of foreign-exchange strategy at Saxo Bank A/S in Hellerup, Denmark. ‘Because of the Dollar’s correlation with higher-yielding assets, it’s likely to resume gains versus the Euro as long as the vote doesn’t cause wider risk contagion,’ he said.
Pound Sterling (GBP) Exchange Rate Fluctuates on Lack of Data
A complete absence of domestic data has caused the Pound to be subject to changes in the currency market. Compounding the sluggish movement is the extremely quiet market whilst traders relax during the holiday period.
US Dollar (USD) Exchange Rate Holding Steady on Quiet Trading
Similar to that of the Pound, a complete lack of domestic data has caused the US Dollar to fluctuate in accordance with movement in foreign currencies. The Dallas Federal Reserve Manufacturing Activity data is unlikely to have a significant impact upon Dollar movement, especially whilst markets are quiet.
The Euro to Pound Sterling exchange rate has trended within a range of 0.7819 and 0.7853.
The Euro to US Dollar exchange rate has trended between a range of 1.2167 and 1.2221.