Foreign Exchange Report : GBP AUD Plummets to 26-Year Low as Greece Votes ‘Yes’ to Austerity, GBP EUR Down Again
30 Jun 2011 at 5 AM - Written by John Cameron
The Pound Euro exchange rate (GBP EUR) is 1.1101. The Pound Dollar exchange rate (GBP USD) is 1.6108. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4989.
Greece’s parliament yesterday voted in favour of the proposed package of austerity measures by 155 votes to 138. The voting was not as clear-cut as some analysts had expected, with one member of the ruling PASOK party joining the opposition ranks in voting ‘no’, while there were two abstentions and five deputies merely noted that they were present.
The ‘yes’ vote sparked violent clashes between masked protestors and security forces in Athens overnight, but the financial markets responded in a more positive fashion to the outcome. Equities have surged forwards since the vote, with the FTE 100 closing up by over 1.5%, whilst US stocks enjoyed their third consecutive day of gains.
It was no surprise that Eurozone policy-makers also reacted positively to developments in Greece, with German Chancellor Angela Merkel describing the ’yes’ vote as ’really good news’. Greece is more indebted to Germany than any other individual state in the world.
The upward move in global appetite for risk has benefited the high yielding currencies, with the GBP AUD exchange rate breaking below the 1.5000 level overnight for the first time in twenty-six years, as institutional investors piled into riskier, more rewarding asset classes.
The GBP NZD rate also dropped to a multi-year low of 1.9369 overnight, for similar reasons. This move was accentuated by last night’s release of the National Bank of New Zealand’s Business Confidence survey for June, which showed a pick-up from 38.3 in May to 46.5 this month.
The market’s focus will once again be on Greece’s parliament today, with deputies facing a second round of voting, this time on the implementation of the austerity package which they voted for, in principal, yesterday. Political analysts believe that more deputies are likely to vote ’no’ today as they are asked to approve the specifics of the spending cuts, tax increases and privatisation plans. The Euro is not out of the woods yet.
For other live currency exchange rates and a currency converter see the currency news website.
Foreign Exchange Report : GBP AUD Plummets to 26-Year Low as Greece Votes ‘Yes’ to Austerity, GBP EUR Down Again
Greece’s parliament yesterday voted in favour of the proposed package of austerity measures by 155 votes to 138. The voting was not as clear-cut as some analysts had expected, with one member of the ruling PASOK party joining the opposition ranks in voting ‘no’, while there were two abstentions and five deputies merely noted that they were present.
The ‘yes’ vote sparked violent clashes between masked protestors and security forces in Athens overnight, but the financial markets responded in a more positive fashion to the outcome. Equities have surged forwards since the vote, with the FTE 100 closing up by over 1.5%, whilst US stocks enjoyed their third consecutive day of gains.
It was no surprise that Eurozone policy-makers also reacted positively to developments in Greece, with German Chancellor Angela Merkel describing the ’yes’ vote as ’really good news’. Greece is more indebted to Germany than any other individual state in the world.
The upward move in global appetite for risk has benefited the high yielding currencies, with the GBP AUD exchange rate breaking below the 1.5000 level overnight for the first time in twenty-six years, as institutional investors piled into riskier, more rewarding asset classes.
The GBP NZD rate also dropped to a multi-year low of 1.9369 overnight, for similar reasons. This move was accentuated by last night’s release of the National Bank of New Zealand’s Business Confidence survey for June, which showed a pick-up from 38.3 in May to 46.5 this month.
The market’s focus will once again be on Greece’s parliament today, with deputies facing a second round of voting, this time on the implementation of the austerity package which they voted for, in principal, yesterday. Political analysts believe that more deputies are likely to vote ’no’ today as they are asked to approve the specifics of the spending cuts, tax increases and privatisation plans. The Euro is not out of the woods yet.
For other live currency exchange rates and a currency converter see the currency news website.
TAGS: Daily Currency Updates Euro Forecasts New Zealand Dollar Forecasts Pound Australian Dollar Forecasts Pound Euro Forecasts Pound New Zealand Dollar Forecasts
Leave a Comment
Related Stories:
- Official Confirms That EC and ECB Are Drawing Up Plans For Greece’s Eurozone Exit, Yet GBP EUR Rate Drops - May 21, 2012
- Spanish Bond Yields Soar As Investors Fear Hard Default By Greece - May 18, 2012
- Australian and New Zealand Dollars Weaken Again As Bank of England Slashes UK Growth Forecast - May 17, 2012
- Pound Euro Exchange Rate Spirals As Greece Heads For Second General Election - May 16, 2012
- Pound Euro Exchange Rate Breaches 1.2500 For First Time Since 2008 As Greek Debt Fears Heighten - May 15, 2012
- Pound Australian Dollar and Pound New Zealand Dollar Rates Could Dip As China Loosens Monetary Policy - May 14, 2012
- Pound Euro Exchange Rate Could Head Higher Following Bank of England Decision to Keep QE On Hold - May 11, 2012
- Pound US Dollar Exchange Rate Recovers Slightly As Greek Anti-Bail-Out Power Bid Fails - May 10, 2012
- Fear Grips Global Markets As Greek Politicians Countenance A Sovereign Debt Default - May 9, 2012
Latest News:
- Kiwi Dollar Claws Back Ground in the Currency Markets as Stock Markets Register Gains - May 21, 2012
- Official Confirms That EC and ECB Are Drawing Up Plans For Greece’s Eurozone Exit, Yet GBP EUR Rate Drops - May 21, 2012
- Swiss Franc Expected To Weaken With Euro As Greek Fears Refuse To Dissipate - May 18, 2012
- Spanish Bond Yields Soar As Investors Fear Hard Default By Greece - May 18, 2012
- Daily Rate Predictions For The US Dollar, Euro, Pound Sterling and Japanese Yen - May 17, 2012
- Australian and New Zealand Dollars Weaken Again As Bank of England Slashes UK Growth Forecast - May 17, 2012
- Today’s Rate Forecasts For The Pound Sterling, Euro, US Dollar and Australian Dollar - May 16, 2012
- Pound Euro Exchange Rate Spirals As Greece Heads For Second General Election - May 16, 2012
- Exchange Rate Predictions For The Pound Sterling, Euro, US Dollar and Hong Kong Dollar - May 15, 2012
- Pound Euro Exchange Rate Breaches 1.2500 For First Time Since 2008 As Greek Debt Fears Heighten - May 15, 2012
Daily Market Updates
Major Currency Forecasts
- Pound Sterling Forecast
- Euro Forecast
- American Dollar Forecast
- Australian Dollar Forecast
- Japanese Yen Forecast
- Swiss Franc Forecast
- New Zealand Dollar Forecast
- Canadian Dollar Forecast
- Norwegian Krone Forecast
- South African Rand Forecast
- Indian Rupee Forecast
- Singapore Dollar Forecast
- UAE Dirhams Forecast
- Turkish Lira Forecast
- Hong Kong Dollar Forecast
Currency Pairs
- Pound Euro Forecast
- Pound Dollar Forecast
- Pound Australian Dollar Forecast
- Pound Yen Forecast
- Pound Swiss Franc Forecast
- Pound NZ Dollar Forecast
- Pound Canadian Dollar Forecast
- Pound Krone Forecast
- Pound Rand Forecast
- Pound Rupee Forecast
- Pound Sing Dollar Forecast
- Pound Dirham Forecast
- Pound Lira Forecast
- Pound HK Dollar Forecast
