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British Pound to Euro (GBP/EUR) Exchange Rate Forecast to Advance as Greek Banks Close, Capital Controls

The Pound Sterling to Euro (GBP/EUR) exchange rate climbed by around 0.56% on Monday morning.

As traders await British economic data, due for publication later on Monday morning, the Pound is generally trending lower versus most of its peers. This can be connected to demand for safe-haven assets and currencies outside of Europe as the Greek crisis worsens.

The Euro crashed versus its peers after Greek Prime Minister Alexis Tsipras called for a referendum on the austerity measures creditors are wishing to impose. The government has now imposed capital controls in order to avoid complete financial meltdown.

The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4182.

Previously…

The Pound Sterling to Euro (GBP/EUR) exchange rate rallied by around 0.48% on Friday afternoon.

With a complete absence of British data to provoke volatility, the Pound is holding relatively steady versus its peers. A slight appreciation can be linked to speculation that Prime Minister David Cameron will be able to pass some reforms related to Britain’s membership in the European Union after his speech was well received by finance ministers.

The Euro, meanwhile, has seen minimal impact from domestic data with focus still dominated by proceedings in Greece. The shared currency is unlikely to see any significant volatility ahead of an emergency meeting on Saturday to discuss Greece.

The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4118.

Pound Sterling (GBP) Exchange Rate Forecast to Trend within Narrow Range against the Shared Currency after Optimistic Cameron

Yesterday’s European Union summit to discuss migration and the crisis in Greece saw Prime Minister David Cameron outline plans for a reform proposal on Britain’s relationship with the EU. Cameron is aiming to sweeten the deal for Britain ahead of an in/out referendum planned for 2017. Although brief and sparse of detail, Cameron’s plans seem to have been well received by ministers.

The European Council’s Donald Tusk said there was a will to help the UK. ‘We should consider British concerns, but only in a way which will be safe for all of Europe. We’ll come back to this in December.’ Mr Tusk said talks would now start, before adding: ‘One thing should be clear from the very beginning: the fundamental values of the European Union are not for sale and so are non-negotiable.’

The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low of 1.4039 today.

Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast to Hold Steady ahead of Emergency Greek Talks

Despite having seen promising signs that Greece and its creditors will be able to come to an agreement following a proposal of reforms by Athens that was initially well received, optimism has all but faded again. The International Monetary Fund (IMF) rejected the proposal and several unscheduled meetings later, the Hellenic nation is seemingly no closer to unlocking aid.

Yesterday’s meetings did not see any significant changes, with both sides butting heads over gaps that are unlikely to be bridged. With several loan payments and the bailout program due to end soon, another emergency meeting has been called for Saturday. Having had many ‘last-chance’ opportunities already, this really could be the 11th hour for the cash-strapped nation.

Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Trend Statically after Minimal Impact from European Data

Given that European data had minimal impact on common currency movement, and with a complete absence of British data, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to trend within a tight range until Saturday’s emergency summit on Greece. There is a slight potential for GBP/EUR changes if any European officials makes public comments regarding the Greek situation.

The Pound Sterling to Euro (GBP/EUR) exchange rate climbed to a high of 1.4079 today.