The Euro to Pound Sterling (EUR/GBP) exchange rate softened by around -0.22% on Thursday afternoon.
As Eurozone finance ministers prepare to meet in an attempt to hash out a deal with Greece, the shared currency edged lower versus its major peers. After extensive talks yesterday led to a renewed stalemate, many analysts fear that the Hellenic nation will fail to secure aid and subsequently default on loan repayments.
The Pound, meanwhile, softened versus many of its rivals ahead of CBI Reported Sales data. The depreciation can be linked to fears regarding the European Union referendum as Prime Minister David Cameron prepares to discuss reforms at the summit in Brussels.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7118.
Euro (EUR) Exchange Rate Forecast to Hold Steady against the British Pound ahead of Greek Negotiations
Despite the fact that Eurozone officials held two meetings on Wednesday in an attempt to secure a deal with Athens to tackle the debt crisis, the two sides failed to bridge gaps. Optimism surrounding the latest Greek proposal faded rapidly after the International Monetary Fund (IMF) rejected it; offering a counter-proposal which hardened left-wing members of Syriza are very unlikely to accept.
Greek Prime Minister Alexis Tsipras commented on the IMF rejection stating; ‘The repeated rejection of equivalent measures by certain institutions never occurred before, neither in [bailout countries] Ireland nor Portugal,’ said Tsipras. ‘This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed.’
Aiding the shared currency depreciation was a lower-than-expected German Consumer Confidence index, which dropped from 10.2 to 10.1 in July.
The Euro to Pound Sterling (EUR/GBP) exchange rate dropped to a low of 0.7125 today.
Pound Sterling (GBP) Exchange Rate Forecast to Trade Statically against the Common Currency ahead of CBI Reported Sales
As British PM David Cameron prepares to address Eurozone finance ministers on reforming Britain’s membership in the European Union, the Pound edged lower versus most of its competitors. Ahead of the summit, Mr Cameron said: ‘This presents an opportunity to get the negotiation under way and to kick off a process to work through the substance and to find solutions. It will take us another step closer to addressing the concerns that the British people have about the EU. And closer to changing the status quo for the better and then giving the British people a say on whether the UK should stay in or leave the EU.’
June’s CBI Reported Sales is due for publication later on Thursday and has the potential to provoke Sterling volatility. Sales are forecast to drop from 51 to 35.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Trend within Limited Range ahead of Eurozone Finance Ministers Summit
With both Sterling and Euro traders awaiting news from today’s Eurozone finance ministers meeting, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold steady. With that being said, the CBI Reported Sales data could provoke changes. A lack of influential European data and complete absence of British data on Friday ought to see the EUR/GBP pairing dominated by geopolitics.
The Euro to Pound Sterling (EUR/GBP) exchange rate climbed to a high of 0.7148 today.