Greece is the Word as Greek Talks Continue ? Pound Sterling Exchange Rate Forecast Higher vs Euro (EUR), USD

June 17, 2015 - Written by John Cameron

STORY LINK Greece is the Word as Greek Talks Continue ? Pound Sterling Exchange Rate Forecast Higher vs Euro (EUR), USD

Pound Sterling Extends Gains against Euro, US Dollar After UK Retail Sales Report

The GBP/EUR exchange rate recorded a modest decline early in the European session but swiftly recouped losses as a report revealed an unexpected increase in UK retail sales in May. Sales were shown to have climbed by 0.2% on the month instead of falling the -0.2% anticipated. The ECB's economic bulletin may trigger an additional bout of Pound to Euro volatility as the day continues, as could the news that the Greek PM is meeting with the Russian President. The Pound was also trending higher against the US Dollar after the retail sales stats were published.

Earlier...

GBP/EUR Exchange Rate Extends Gains Today, UK Jobs Data, Greek Exit Cause Currency Movement

It’s an old old song but its words have never been more apposite to the Pound Sterling euro exchange rate (GBP EUR) -
Greece is the word, is the word that you heard
It's got groove, it's got meaning
Greece is the time, is the place, is the motion
Greece is the way we are feeling

Pound Gains Against Euro (EUR), US Dollar (USD) Exchange Rates Now as Greek Exit Forecast

The Pound pushed ahead against the euro (currency:EUR) once again during today’s session, with the pair touching 1.3993 earlier on today. The renewed shift higher for Europe’s premier pairing was driven by comments from Greece’s central bank warning of an ‘uncontrollable crisis’ if Greece leaves the eurozone.

Meanwhile, the mood in Athens has deteriorated, with members of the ruling Syriza party apparently calling supporters to arms.

Stathis Leoutsakos, a leading member of Syriza, stated in a local radio interview earlier today that, ‘I don’t mean tanks in the classic sense of the word. Today tanks have been replaced by a communications game that they play in great skill in the eurozone.’

Meanwhile, other Syriza members are threatening to take to the streets in a mass rally later tonight.

Forecast for GBP/EUR Exchange Rates - Pound to Gain if Greece Won't Compromise

Elsewhere, Greek Prime Minister Alexis Tsipras ramped up the odds with confirmation that he would be willing to walk away from negotiation with the EU / ECB / IMF Troika and plunge his nation into a perilous debt default. However, Tsipras left the door open to a compromise, stating that, ‘we have only one option and that is to find a solution that will be accepted and passed by the government and the parliament...If we do not have an honourable compromise, we will once again say the ‘big no’.’
The potential that the Athens contingent could say the ‘big no’ and walk away from the discussions has lead many analysts to forecast that the Pound Sterling exchange rate could be about to break through to a fresh 7 ½ year high above 1.4257 GBP EUR.

GBP to EUR Exchange Rate Trends at 1.3965

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TAGS: Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts