What’s going on in Cyprus? GBP/EUR rates could be on the move (Alistair Ryan)

Pound to Euro Rate: GBP Falls on Virus Fears and Manufacturing Data as EUR Rallies

We could be in for a very busy day on the currency markets. This morning we have the Bank of England minutes released at 9:30am which will detail all of the policy discussion and show how many members voted for and against further Quantitative Easing (QE). Following this in the afternoon is The Budget 2013. Historically The Budget doesn’t tend to have much of an effect on the currency markets but with all of the volatility in the markets at the moment this could be worth keeping an eye on.

The main headline everywhere you look at the moment and the key mover on the markets is still seems to bethe crisis in Cyprus. Yesterday it was announced that Cyprus’s government rejected an international bailout, with none of the 55 voting MPs going in favour of the proposed levy. This creates a lot more uncertainty in the markets with Cyprus’s failiong economy in desperate need to find a way out of these dark times.

This on going matter coupled with various other activities across the eurozone and the UK are keeping everyone on their toes as we could see GBP/EUR rates spike in a matter of moments. As I have stated previously I still think one of the main market movers in the coming weeks will be whether the UK can avoid a Triple Dip reccession and until this is resolved I think the volatility with GBP/EUR rates will continue.

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