GBP-EUR Predictions: Further Losses Forecast for British Pound Sterling to Euro Exchange Rate Ahead of UK General Election

April 30, 2015 - Written by John Cameron

STORY LINK GBP-EUR Predictions: Further Losses Forecast for British Pound Sterling to Euro Exchange Rate Ahead of UK General Election

The Pound Sterling to euro exchange rate has plunged during today’s session thanks to the slightly more positive tone of data emanating from the eurozone.

Perennial debt-struggler Spain published some markedly more positive economic statistics a short time ago which revealed that the economic recovery had accelerated. Quarterly growth of 0.9% in the Iberian state during the first three months of 2015 provided some grounds for optimism from investors holding the euro and this go-ahead news was backed up by some stronger than expected whole of eurozone inflation figures which revealed that the region had pulled away from deflation last month. The pace of price rises increased from -0.1% in February to a marginally higher 0.0% last month, but the result was enough for analysts to posit that the European Central Bank’s controversial Quantitative Easing programme is beginning to have its desired effect.

Meanwhile, Greece’s policymakers are apparently becoming increasingly certain that a debt deal with its creditors will be forthcoming in the near-term. Greece’s Finance Minister Yanis Varoufakis, alluded to a psychical attack which he had recently endured during a speech to Greece’s parliament today, stating that,

‘We all try not to resort to ‘easy solutions’ when it comes to violence matters. It’s imperative not to look for easy solutions. It is not a solution to fighting violence with violence, or by running away’.

The charismatic money man from Athens went on to liken his assault to the treatment which Greece has received from its creditors in recent years, observing that, ‘there is also another type of violence, a very ‘civilized’ violence, but at the same time brutal and destructive’.

Notwithstanding this extended metaphor, both Varoufakis, and Greek Prime Minister Tsipras have forecast a positive conclusion for Greece’s debt situation within days. The euro received a further boost earlier with Russia announcing yet another interest rate cut aimed at boosting the nation’s economy. The Pound Sterling euro exchange rate slumped to a 3-week low of 1.3754 as a result and there could be further losses for the pair ahead of next week’s UK General Election.

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