Sterling Euro Exchange rates continue to be dictated by the impact of the Greek Bailout. They have broken through 1.41 once more during today’s trading session as Greece failed to make payment of the 1.6bn€ due to the IMF; this caused further confidence in the Euro to diminish and subsequently rates fell.
A referendum has been called in Greece to decide whether to accept the recent plan proposed by their creditors which would extend the bailout if reforms (cuts) are accepted in their economy.
If you have a currency transfer coming up this is a topic you should keep up to date with. The referendum is schedued for the 5th, and this puts the decision with Greece’s population on its future relationship with the Eurozone as a whole. In the build up to this event, the uncertainty could arguably weaken the Euro further, creating further opportunities for Euro buyers.
Personally, I believe the negotiations will carry on and a resolution will occur. The only reason a referendum was called was because the Greek Prime Minister, Alexis Tsipras, promised to end austerity…but you cannot keep spending more than you earn indefinitely, and cuts have to be made. He cannot take the logical route without being labelled a liar and a farce by the Greek population, so it seems he has called a referendum in the hope that his citizens will make the hard decision for him.
Similarly, the Eurozone cannot allow Greece to leave, for fears that other struggling nations such as Portugal and Spain will do the same. So an 11th hour deal is still likely, but the content is still completely uncertain. Greece are now calling for a 2-year bailout and we’ll see if this is still what is being asked for after the weekend.
This situation is staggeringly volatile, with backroom diplomacy and new offers dominating the headlines. There will be no time for anyone to ‘take a breath’ over the next few weeks. Email me on [email protected] so that we can stay in contact over this period. Whether you are buying or selling Euros, if pertinant news is released in the public space, or through our sources which we recieve ahead of time from the likes of the BBC, you can be contacted immediately to make an informed decision about your currency transfer. Instead of waiting for posts to appear on this site once or twice a day, you could have a currency expert watching the markets for you, who will have a tailored understanding of your situation and will know what to look out for. The current 8 year highs against the Euro should be maximised, and this is the best way to do so.