GBP EUR Exchange Rate Maintains Gains On Cyprus Bailout Fears, GBP AUD, GBP CAD & GBP NZD Rates Also Up

Published: Tuesday, 19 March 2013 09:00 BST - Written by Tim Boyer

STORY LINK GBP EUR Exchange Rate Maintains Gains On Cyprus Bailout Fears, GBP AUD, GBP CAD & GBP NZD Rates Also Up

One issue dominates the thoughts of investors in the foreign currency market at the moment – the proposed bailout for Cyprus. News has emerged within the past 24hrs that the terms of the miniscule Island state’s emergency funding package are to be re-negotiated following widespread public outrage amongst the nation’s population at the proposed levy of almost 7% on balances of under €100,000 being held in Cypriot banks. The debt-addled state’s banks are to remain shut until at least Thursday in order to prevent a run on them.

The re-jigging of Cyprus’s bailout terms appears to have been driven by the eurozone’s Finance Ministers, who approached Cypriot policymakers following protests across the nation which have taken place since the terms of the original emergency funding package were announced on Saturday. Cyprus’s government is due to hold a vote on the proposals later today. In the run-in to this ballot, the euro remains under pressure and the Pound to euro exchange rate (currency : GBP EUR) continues to trade in the upper half of the 1.1600s as today’s session gets underway.

GBP EUR is not the only currency pair ‘on the up’ in the aftermath of developments in Cyprus. The risk-driven Canadian and New Zealand Dollars have both started the week firmly on the back foot, sending GBP CAD and GBP NZD higher. The Pound to Australian Dollar exchange rate has also made gains, sending it back into the mid-1.4500s – a significant level which stood as the pair’s 28 year low until 2 weeks ago. The ‘Aussie’s’ fortunes were not helped by last night’s Reserve Bank of Australia minutes which stated that further interest rate cuts may be necessary as 2013 progresses.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Daily Currency Forecasts