GBP/EUR Exchange Rate Back to 1.39 before UK Budget
With Greece now being given until tomorrow to present reform proposals, and the debate on said proposals not due to take place until Sunday, the Euro was able to recover ground. The Pound Sterling to Euro (GBP/EUR) exchange rate returned to trending in the region of 1.39 ahead of the announcement of the first entirely Conservative budget for almost 20 years.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3987
If today’s talks between key European officials see Greece secure a bailout deal the Euro could surge, but a lack of progress would leave the nation on the brink of disaster and could push the Pound Sterling to Euro (GBP/EUR) exchange rate to its best exchange rate of 2015. However, as it stands the Pound has fallen back to the 1.40 level.
Pound Sterling to Euro (GBP/EUR) Exchange Rate News: Pound Trends around 1.41 Today after UK Manufacturing, Industrial Production Data
As the European session got underway the Pound Sterling to Euro (GBP/EUR) exchange rate continued trending in the region of 1.4133, up slightly on the day’s opening levels.
While the GBP/EUR pairing managed to achieve a high of 1.4150 after German industrial production numbers fell short, mixed data from the UK and speculation surrounding the latest developments in Greece tempered Sterling’s gains.
UK Manufacturing Production disappointed by sliding -0.6% on a month-on-month basis in May, defying forecasts for a monthly increase of 0.1%. The annual manufacturing production number accordingly printed at 1% rather than the 1.8% projected.
However, Industrial Production did rise by 0.4% on the month, instead of registering a monthly -0.2% slide and was up 2.1% on the year.
The GBP/EUR pairing dipped to 1.40 as trading continued.
Greek PM Meets with German, French Leaders, Can a Grexit be Prevented? GBP/EUR, EUR/USD Exchange Rate Movement Predicted
Today’s talks between Greek Prime Minister Alexis Tsipras, German Chancellor Angela Merkel, French chief Francois Hollande and other European officials could bring an end to half a decade of Greek unrest and half a year of political uncertainty.
The Greek PM is under pressure to present creditors with a viable plan which meets their demands but also reflects the will of his anti-austerity populace. It remains to be seen whether such a deal is actually achievable.
It was also reported that the US President has commented on the issue, with Barack Obama apparently agreeing with the French Premier on the need for a resolution to the Greek crisis.
Yesterday Merkel stated; ‘It will be important tomorrow that the Greek Prime Minister tells us how this should move forward. The last offer that we made was a very generous one. On the other hand, Europe can only stand together, if each nation takes on its own responsibility.’
Although today’s crisis discussions are being viewed as crucial, some industry experts have argued that discussions could effectively continue until towards the end of July, with Greece due to make a 3.5 billion Euro repayment to the European Central Bank (ECB) on July 20th.
Deutsche Bank Euro (EUR) Exchange Rate Predictions: After Falling to the Lowest Rate of 2015 the Common Currency Shows Resilience in the Face of a Grexit
Although the Euro plummeted across the board after Greek Prime Minister Alexis Tsipras outlined his referendum intentions – with the Pound Sterling to Euro (GBP/EUR) exchange rate rising to a seven-year high of 1.43 – the common currency recovered ground and has since displayed remarkable resilience in spite of all the uncertainty.
But why has the Euro managed to hold its own? And what does this mean for the common currency long term?
Deutsche Bank analysts share their thoughts; ‘Opinion is divided between the following two trains of thought: i) that the market is still optimistic that a negotiated settlement can be reached and Grexit averted. Or, ii) Grexit is no longer seen as particularly disruptive for global markets, at least in the short-term. Importantly, i) and ii) are deeply inter-connected.’
They continue; ‘The most important aspect of the latest risk resilience is that is has dramatically weakened Greece’s negotiating power. Market resilience adds to the prospects of either Grexit, or Greece agreeing to terms that are not that different from what was on offer prior to the referendum, which may not be credible as a long-term solution.’
The outcome of today’s discussions is likely to have a considerable impact on Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rate trading in the hours ahead. The brokering of a deal is likely to lend the Euro support while any signs of further delay in resolving the situation would weigh on the common currency.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast – UK GDP, BoE Interest Rate Decision, Greece to Impact Currency Trading
While the Greek talks are likely to be the main cause of Pound Sterling to Euro (GBP/EUR) exchange rate trading today, investors will also be taking an interest in the National Institute of Economic and Social Research’s (NIESR) UK GDP estimate for June. If the pace of UK output is shown to have accelerated, putting more pressure on the Bank of England (BoE) to increase interest rates, the Pound could gain on peers like the Euro and US Dollar.
This week’s BoE interest rate decision, although unlikely to see any policy adjustments made, may also be a source of modest Pound fluctuations.
Current GBP, EUR, USD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4120, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5496, the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.0969 and the US Dollar to Euro (USD/EUR) exchange rate was trending in the region of 0.9115