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Greece Debt Default Expected: Pound Sterling to Euro Exchange Rate Predicted to Move Higher, GBP EUR Currency Pair Gains Today

June 16, 2015 - Written by John Cameron

Pound Sterling to Euro (GBP) Exchange Rate Forecast to Gain if UK Employment Data Beats Forecasts



The GBP to EUR exchange rate could consolidate and extend recent gains in the hours ahead if the UK's employment stats show that the unemployment rate held at a multi-year low and that average earnings rose. The BoE meeting minutes will also have an impact on Pound to Euro trading, as will the Eurozone's final inflation data and construction output report.

The GBP/EUR exchange rate was trending in the region of 1.3884

Earlier...

Rising Odds of a 'Grexit' Cause Pound Sterling to Euro (GBP/EUR) Exchange Rate Declines Today



Strong comments from debt addled Greece’s Prime Minister Alexis Tsipras during an address to his nation’s parliament this afternoon have seen investors shift out of the euro (currency:EUR) en masse.

Tsipras raised the spectre of a disorderly debt default, telling his fellow MPs that, ‘the time has come for the IMF’s proposals to be judged not just by us but especially by Europe.’ He went on to assert that, ‘right now, what dominates is the IMF’s harsh views on tough measures, and Europe’s on denying any discussion over debt viability.’


But, perhaps the most incendiary comment was still to come, with the Athens supremo complaining to all who would listen that, ‘the fixation on cuts... is most likely part of a political plan... to humiliate an entire people that has suffered in the past five years through no fault of its own... They are asking us to accept an agreement which will drag us into a vortex of recession and uncertainty’.

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EUR to GBP, USD, AUD Exchange Rates Forecast to Fluctuate as Greek Negotiations Progress



The suggestion from Greece that the aim of the IMF / EU / ECB Troika during the ongoing debt discussions has been to crush and demoralise Greece is likely to be ill-received by policymakers in Brussels. Tsipras’ belief that it is the Troika who are failing to take the bail-out discussions seriously was evidenced by his observation that, ‘we submitted a proposal for a viable deal and got back a 5-page text that ignored the negotiations that had already taken place.’

Greek Default Likely, GBP/EUR, USD/EUR Exchange Rates Could Climb in 2015



Never has a full-blown Greek debt default appeared more likely and investors shifted wholesale out of the single currency as a consequence. The upshot sent the Pound Sterling euro exchange rate up to close to the 1.4000 threshold for the first time since 29th May. A break and hold above the psychologically significant 1.4000 threshold would leave the pair eyeing its 7 ½ year high of 1.4257 which it touched off during the middle part of March.

The EUR/GBP exchange rate was trending in the region of 0.7185, down 0.6% on the day
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TAGS: Dollar Pound Forecasts Euro Forecasts Euro Pound Forecasts

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