GBPEUR is likely to drop on the settlement of the Greek uncertainty, that is once the Eurozone can agree on a package for the Greeks and a framework within which they can all make a plan to settle the huge outstanding Greek debt. To what extent will this happen? Well there are never any guarantees on the market but we would expect by and large to see the situation rectified which will cause the Euro to strengthen.
Let us look at the facts. Both side want Greece to remain part of the Euro. To let Greece leave will set a very dangerous precedent for the rest of the Eurozone which might lead to further countries leaving in the future. On balance I would expect the rates to remain good for buying but strengthen once the resolution is achieved.
To keep up to date with the latest new on the Euro and GBPEUR please contact me Jonathan on [email protected]