Euro to Pound Sterling Weekly Roundup - April 20 -24

April 26, 2015 - Written by Toni Johnson

STORY LINK Euro to Pound Sterling Weekly Roundup - April 20 -24

Euro to Pound Sterling Weekly Exchange Rate Roundup – April 20 -24

At the start of the week, the Euro exchange rate remained under pressure against most of its major peers as concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors continued to weigh upon sentiment. The Pound Sterling firmed against the Euro following the release of German factory price data, which came in below expectations.

On Tuesday, the single currency weakened further against its most traded peers as concerns over the lack of a deal between Athens and its creditors continued to weigh. Worries increased after the European Central Bank (ECB) announced that it could start to rein in its support for Greek banks as policy makers grow increasingly frustrated with the lack of progress in the negotiations. The single currency also came under pressure from the publication of softer-than-forecast ZEW economic sentiment data for both Germany and the wider Eurozone. The Pound Sterling advanced above the 1.40 level against the Euro as concerns over a possible ‘Grexit’ from the Eurozone continued to grow.

Greece Worries Weigh on EUR/GBP Exchange Rate

Midweek, the Euro softened further as fears over a Greek default persisted. Mayors across Greece launched protests against their government as a government decree ordered them to hand over their cash reserves in order for the nation to pay its bills.

The Pound Sterling continued to trade above the 1.40 level against the Euro on Thursday as it found support from hawkish Bank of England policy meeting minutes. The minutes showed that policy makers expect inflation in the UK to rebound strongly later in 2015.

The Euro weakened against its major peers again on Thursday as PMI data missed expectations. As the session progressed, it then made gains against the Pound as the UK currency was weakened by a worse-than-forecast retail sales report.

On Friday, the Euro remained under pressure against its peers as economists as talk of a ‘Grexit’ has intensified. The leader of the biggest political group in the EU said that a ‘Grexit’ is now a realistic option. Weaker-than-forecast UK retail sales data continued to weigh on the Pound. With a lack of market moving domestic data, the Pound was influenced by the May 7 general election and events occurring elsewhere.

Looking ahead to next week, we can expect the Euro to remain under pressure from concerns over the Greek situation. The main data events due next week for the single currency will be Thursdays Eurozone inflation and unemployment data. The Pound meanwhile will likely be volatile as the general election draws closer.

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