The Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.45% on Monday afternoon. The Euro to US Dollar (EUR/USD) exchange rate declined by around -0.80%.
Although there are reports that progress has been made between Athens and the Eurogroup, the shared currency slumped versus many of its major peers. The lack of confidence that Greece will unlock bailout funds is justified considering the length of time the talks have spanned thus far. Should the Greek government fail to find a solution, they have until the end of the month before banks hit insolvency.
The Pound, meanwhile, edged higher versus many of its major peers despite relatively poor domestic data. The advance can be attributed to speculation that Tuesday’s inflation data will print positively.
The US Dollar strengthened versus many of its rivals early during Monday’s European session as traders forecast better domestic data results over the coming week, However, Monday’s solitary data publication printed below expectations which has seen the ‘Greenback’ (USD) cool – albeit only fractionally.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7245.
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1353.
Euro (EUR) Exchange Rate Forecast to Soften versus the Australian Dollar amid Geopolitical Tension
Although reports have suggested that Greece is closer to unlocking the vital bailout, the shared currency softened versus most of its major peers. This is perhaps to be expected as similar reports have emerged over the last few months to no avail. One thing is certain, however, and that is that Greece has until the end of the month before banks hit insolvency and the cash-strapped nation runs out of options.
‘More time and effort is needed to bridge the gaps on the remaining open issues in the negotiations,’ Commission spokesman Margaritis Schinas told a regular news briefing. ‘We welcome the commitment by the Greek authorities to accelerate their work with the institutions with a view to achieving a successful conclusion of the review in a timely fashion,’ he said. ‘Constructive contacts are ongoing and progress is being made, even though still at a slow pace,’ he added.
Pound Sterling (GBP) Exchange Rate Edges Higher despite Poor Housing Data
After a spate of profit-locking saw the Pound decline versus the majority of its currency counterparts, the Pound strengthened on Monday amid fears the declination was unjustified. The appreciation was slowed, however, after domestic data failed to impress. May’s Rightmove House Prices increased by 2.5% on the year, but softened by -0.1% on the month.
Much of the Pound’s uptrend can be linked to speculation that the week’s forthcoming domestic data will print positively. Should inflation move further away from negative territory, the Pound is likely to rally.
US Dollar (USD) Exchange Rate Holds Gains despite Disappointing Domestic Data
Since the turn of the year, the US Dollar has softened considerably after a succession of rocky data results saw futures traders pare bets as to the timing of a Federal Reserve rate hike. The US Dollar strengthened on Monday, however, amid speculation that the economic data publications over the coming week will provide positive results.
However, the gains have been hindered on Monday after the solitary US data publication failed to meet with the median market forecast. The NAHB Housing Market Index was expected to rise from 56 to 57 in May, but the actual result dropped to 54.
Euro to Pound Sterling (EUR/GBP) and US Dollar (EUR/USD) Exchange Rates Forecast to Hold Losses amid Geopolitical Uncertainty
Given the lack of domestic data to provoke volatility, and with uncertainty regarding Greece’s bid to unlock bailout credit, the Euro to Pound Sterling (EUR/GBP) and US Dollar (EUR/USD) exchange rates are likely to hold losses for the remainder of Monday’s European session.
Tuesday should see heightened EUR/GBP/USD volatility with several important data publications pertaining to Europe, the UK and the US.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending within the region of 0.7233 – 0.7284.
The Euro to US Dollar (EUR/USD) exchange rate was trending within the parameters of 1.1335 – 1.1447.