Pound to Euro Forecast: Will GBP/EUR See 1.4 on Today's Exchange Rate Markets?

February 19, 2015 - Written by John Cameron

STORY LINK Pound to Euro Forecast: Will GBP/EUR See 1.4 on Today's Exchange Rate Markets?

Today's Pound Sterling to Euro Exchange Rate Forecast and Predictions 2015

This afternoon’s session has seen the Pound Sterling to euro (GBP/EUR) exchange rate spike to close to yesterday’s multi-year high of 1.3609.

The renewed shift out of euro-denominated assets was driven by Germany’s swift rejection of Greece’s proposals for dealing with its impending debt meltdown.

Euro (EUR) Exchange Rate Remains Volatile on Grexit

Greece officially requested a 6-month extension to its eurozone loan programme earlier today.

The debt-addled Hellenic state wanted this to be a ‘no strings attached’ advance rather than an extension of its existing bailout agreement which places stringent conditions including public spending caps and minimum wage limits on the Hellenic state’s government.

The German people are likely to view this proposal as another example of the ‘profligate Greeks’ wanting to ‘have their cake and eat it’; to this end, a German finance ministry spokesman was reported to have stated a short time ago that it was, ‘not a substantial proposal for a solution’.

The dismissive tone of these words suggested that Germany and Greece remain poles apart regarding how best to deal with the debt-addled Hellenic state’s situation.

ECB Minutes Drive GBP/EUR Exchange Rate Outlook

Meanwhile, the first ever minutes of a European Central Bank monetary policy were published earlier today.

The memos of the Bank’s meeting on 22nd January may have a bearing on the German delegation’s attitude towards the continuing Greek debt talks.

The get-together of the euroland’s central bankers yielded the announcement of a massive €1.14tn Quantitative Easing programme from the ECB and the memos confirmed that German was firmly against this policy during both the lead-up and the aftermath of 22nd January decision.

The report went on to note that, ‘a number of considerations in favour of maintaining a wait-and-see stance at the current meeting were advanced by some members’.

These same doubters went on to assert that Quantitative Easing should only be, ‘used only as a last resort in the event of an extremely adverse scenario.’

So, it appears that the ECB’s governing board steam-hollered Germany to get QE up and running.

Will the Teutonic giant put up with being curtly overruled twice in quick succession?

Many analysts forecast that the answer to this is a resounding ‘no’ and that the Pound euro exchange rate will spike towards 1.4000 GBP EUR as a consequence.

Euro Exchange Rates

The Euro to Australian Dollar exchange rate converts +0.12 per cent higher at 1 EUR is 1.46180 AUD.
The Euro to Canadian Dollar conversion rate is +0.41 pct higher at 1.42577 EUR/CAD.
The Euro to Pound Sterling exchange rate today is converting -0.11 per cent lower at 0.73777 EUR/GBP.
The Euro to US Dollar conversion rate is -0.09 pct lower at 1.13895 EUR/USD.

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: Currency Predictions Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts