The Euro to Pound Sterling (EUR/GBP) exchange rate was trending within a limited range on Wednesday morning.
As Eurozone finance ministers prepare to meet for the third time in a week, the shared currency is generally holding steady versus most of its major peers. A slight appreciation can be linked to optimism that Athens will be able to secure a deal before credit runs dry.
The Pound, meanwhile, edged higher versus its major rival after an end to a long spate of profit-taking. Traders are now adjusting positions to bring Sterling back to justified levels. BBA Loans for House Purchase has the potential to provoke volatility for the UK asset.
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7106.
The Euro to Pound Sterling (EUR/GBP) exchange rate was trending in a narrow range on Monday as investors were poised to pounce on Euro (EUR) purchases if a deal was made between Greece and its creditors.
Alex Stubb, Finland’s finmin, keeps it brief: “I have very low expectations for today.” #EuroSummit
— Jennifer Rankin (@JenniferMerode) June 22, 2015
It’s been an interesting time for the Euro (EUR) over the past five months since radical left-wing party Syriza was voted into power. The anti-austerity party vowed to fight the Eurozone’s most prominent institutions – the International Monetary Fund, the European Central Bank (ECB) and European Commission—collectively known as the troika.
Greece Optimism Jumps as Bailout Extension Offered – Euro (EUR) Stabilises
However, creditors were perhaps worried that a deal between Greece and Russia would materialise as the nation has been offered a six-month bailout extension as its current package ends on June 30th. It seems Greece is still in a muddle though after the government sent the wrong reform documents to its creditors late on Sunday night.
One official stated: ‘It’s not so dramatic, but they sent the wrong one by mistake.’
However, the progress made in the past few days seem to be more substantial than any developments made in the past five months.
Financial analyst Connor Campbell commented: ‘The main reason behind the positivity is hope that this latest Greek proposal contains the much needed concessions the country’s creditors have been looking for; described as “a good basis for progress”, already these proposals have been received better than the usual “insulting” attempts at reform.’
The situation is continually developing and therefore the Euro (EUR) exchange rate is susceptible to sudden movement until an agreement is reached.
— EU Council (@EUCouncil) June 22, 2015
— Derek Gatopoulos (@dgatopoulos) June 23, 2015
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast: GBP in for Quiet Week, UK BBA Loans for House Purchase and CBI Data Ahead
Meanwhile, the Pound (GBP) exchange rate is likely to have a relatively boring week on account of a dearth of UK domestic data. Tuesday will see the release of the CBI Trends Total Orders and Trends Selling Prices ecostats, while Wednesday will continue with the BBA Loans for House Purchase number.
Thursday will see only CBI Reported Sales data published and Friday will be devoid of UK data entirely.
The Pound (GBP) exchange rate did rather well last week with much of its movement on account of favourable domestic data and speculation that the Bank of England (BoE) may be gearing up to hike interest rates in the near future.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.4002.
The Euro to Pound Sterling (EUR/GBP) exchange rate is trending in the region of 0.7144.