Here at GBP EURO Forecast we are currency specialists working for the UK’s top currency broker. Through this website you will find regular information on the currency market in simple terms, allowing you to make an educated decision as to when to complete a currency exchange.
Earlier today news was leaked by a number of ECB sources suggesting that each member state should plan for the worst of Greece was to leave. This is the first official real notification from the European Central Bank that Greece departing form the EU is a real possibility. As a result the euro weakened consistently to a 21 month low, meaning anyone with €200,000 to sell lost £1,900 in less than 2 minutes. Fears were also intensified as the Greek Prime Minister, Lucas Papademos, said that Greece had no choice but to except a painful austerity program or face a damaging exit from the euro zone.
I think everyone can see that the stakes are high and it is greatly affecting the flow of investment and therefore currencies demand and price hour by hour. It is a political event that everyone with exposure should be very aware off as well as the risk of loss in the matter of minutes.
Tomorrow as mentioned a few days ago we have the UK GDP figures being released. These are widely expected to be revised up and I personally would be surprised not to see GBP stronger against the euro as a result in early trading tomorrow on the release at 9:30.
We also however have a European meeting taking place including the new parliamentary members to reopen discussion on a euro wide euro bond. This has previously been squashed by the powerful Germans who would lose out if it was implemented. Initial conversations are taking place this evening and over the next few days. Many are not expecting any news other than a washy statement so I don’t expect it to have a huge effect on markets this week.
For more information on data this week and how this could change your position, feel free to contact me directly at [email protected] or on 01494-787-478