Greek update

GBP EUR Drops After GDP Misses BoE’s 5% Target

Traders eyes are on the Europeans this afternoon as a meeting takes place with Greek the main topic of discussions. There is the potential that an agreement can be made about its financial future but to be honest I don’t think there will be. With a country holding billions of debt, 14 million strong but with no industry I struggle to understand how they can manage the debt never mind pay it back. It seems however the Europeans are uncomfortable with simply writing the debt off and will no doubt ‘kick the can down the road’ with another short term fix.  The impact on the currency market will probably be some euro strength, whether this comes this weekend or next week is however the unknown. Thereafter the UK election is expected to take centre stage and create further falls on the GBPEUR pairing.

If you have any euros to buy within the next 6 weeks it does seem very unlikely that rates will climb from where they stand at the moment. If it does go up, it will probably be with small gains, if it falls it could be significant.

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