The Euro to Pound Sterling (EUR/GBP) exchange rate has advanced decisively since earlier with a 0.5% gain for the common currency (EUR).
Party Feuds Split Greek Parliament, Single Currency still Rises overall
The Euro (EUR) has performed well today, as the UK debt results failed to trigger an uptrend for the Pound (GBP). However, the Euro’s faring is unusual, to say the least, as on the same day that Greece received the first of its bailout payments, Former Prime Minister Alexis Tsipras resigned as part of proceedings for a new Greek general election.
Tsipras ostensibly called the election to remove dissidents from his own party, but ironically, by forcing a second election in less than a year, Tsipras may have already accomplished his goal. 25 MPs from Tsipras’ Syriza party broke away today to form the Popular Unit party, which has essentially made itself the antithesis to Tsipras by pledging to leave the Eurozone and reject the still freshly-secured third bailout.
The Euro may continue to rise against the Pound (EUR/GBP) later on when the Eurozone Consumer Confidence score comes in, assuming that it shows a major rise in the score, of course.
The Euro to Pound Sterling (EUR/GBP) exchange rate has worsened since yesterday and is now trending narrowly.
Impending UK Debt Figures Could Swing EUR/GBP Either Way
The Euro (EUR) has fallen against the Pound Today (EUR/GBP), with Sterling (GBP) seeing marginal gains against the common currency (GBP/EUR). This comes as Greece finds itself under the rule of a caretaker government following Former Prime Minister Alexis Tsipras’ resignation yesterday. The decision was not entirely willing; Tsipras called for a general election yesterday, but by Greek law he is required to resign before a new Prime Minister can be elected. Expectations place the date of the vote on September 20th, although Tsipras’ chances of regaining the biggest seat in the Greek parliament lessened considerably today as over twenty members of his own Syriza party broke away to form their own, the Popular Unity party.
The Pound Sterling may rise against the Euro soon, as the UK Public Finances and Public Sector Net Borrowing figures are due in, and for the latter figure at least, a -£2.8bn reduction in UK debt has been predicted.
The Euro to Pound Sterling (EUR/GBP) exchange rate has climbed substantially today as, for now, Greece’s place in the Eurozone seems secure.
Euro sees Sweeping Gains Today as Greek Bailout Package is (Finally) Opened
The Euro (EUR) has risen by 0.6% against the Pound Sterling (EUR/GBP) today, and has advanced exponentially elsewhere. The common currency has seen gains of over 1% against the Indian Rupee (EUR/INR), the South African Rand (EUR/ZAR) and the Australian Dollar (EUR/AUD). The Euro even managed to secure a 0.2% rise against the Swiss Franc (EUR/CHF), which has been enjoying an uptrend against most other currencies today thanks to the rising cost of gold.
The third Greek bailout deal was secured last night when the European Stability Mechanism (ESM) approved the measure. Since then, the ESM has sent €13bn to the Greek parliament to pay off its most pressing debt deadlines, and this satisfactory conclusion to the over-a-month long talks has inspired major confidence among investors for the common currency. In the future, the next big event in Greece could be the calling of another election by Prime Minister Alexis Tsipras to remove dissenters from his party. However, Tsipras may first face a vote of no confidence, as he has been strongly criticised for effectively reneging all of the pledges that he was elected on to secure Greece’s third bailout.
Pound Sterling has Mixed Performance as Rising Retail Sales Figures Fail to Meet Predictions
The Pound Sterling (GBP) has fallen by -0.6% against the Euro (GBP/EUR) today, but despite posting a number of significant losses, the Pound has also seen major gains in some pairings. The Pound has fallen by over -0.4% against the Swiss Franc (GBP/CHF), the Czech Koruna (GBP/CZK) and the Danish Krone (GBP/DKK), but has also risen by 1% against the Russian Ruble (GBP/RUB) and by a greater 1.5% against the Turkish Lira (GBP/TRY).
The Pound’s varied performance today has come after the UK Retail Sales results for July all showed growth; nevertheless, the rises fell short of forecasts, and confidence in the Pound declined as a result.
EUR/GBP May Drop off if Old Fears of Political Instability take Precedence Today
Neither the Eurozone nor the UK have any more major data releases due today, so the Euro (EUR) is likely to continue holding its advantage against the Pound (EUR/GBP) if Euro-optimism continues to rise. However, the possibility of further political unrest in Greece, so soon after the bailout has been agreed, may dampen some of the current confidence that the Euro is benefitting from.
Current EUR, GBP Exchange Rates
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7134 and the Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4021 today.