Sterling Euro hits 1.38 (Tom Holian)

Sterling vs Euro exchange rates have hit their highest level all week as fears increase that the Greeks will not be able to make their next deadline due at the end of the month.

The country was able to extend last week’s deadline to the end of June but with debts as high as almost EUR7bn this month alone the fact that they couldn’t pay the EUR305mn leads to doubts that a resolution will take place this month.

This has caused the Euro to weaken against both Sterling and the US Dollar as investors sell off the single currency in favour of safer havens.

Indeed, yesterday’s meeting between Greek PM Tsipras and the IMF did not go too well with no resolution agreed.

The sticking points include pensions, taxes and financing which are all what the Syriza party focussed upon during their election campaign.

The Greek government are stuck between trying to keep their electorate happy whilst also maintaining good relations with their creditors.

Expect the Euro to weaken this week vs Sterling as the talks are ongoing. The only respite for the single currency could be if a debt agreement is reached.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]