Euro to Pound and US Dollar Exchange Rate News Now: EUR/USD, EUR/GBP Direction Depends on Greek Outcome

June 26, 2015 - Written by John Cameron

STORY LINK Euro to Pound and US Dollar Exchange Rate News Now: EUR/USD, EUR/GBP Direction Depends on Greek Outcome

Forex Outlook: Euro Trending Lower against Pound (GBP), US Dollar (USD) as Greek Talks Stall

Both the Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates were trending in slightly softer positions on Friday as the focus of investors was drawn (as it has been for the past few months) to Greece. The nation’s future in the Eurozone has been in jeopardy since Syriza came to power in January and after five months of negotiations the situation remains less than settled.

Greece has refused to compromise on what it’s termed electoral ‘red lines’ – in other words, the policy promises which got Syriza elected in the first place. Meanwhile, its creditors are insisting that some concessions must be made if Greece hopes to receive essential aid in time to meet its next repayment to the International Monetary Fund.

Currency Update Today: Greek Reform Proposals Rejected, Euro (EUR) Fluctuates

Earlier this week Greece presented its creditors with its latest set of reform proposals. Initial murmurings were positive and the Euro rallied against the majority of its currency counterparts in response. However, while its creditors acknowledged that it was more promising than previous drafts, they still rejected it – much to the annoyance of Greek PM Alexis Tsipras.

At the time Tsipras tweeted; ‘The repeated rejection of equivalent measures by certain institutions never occurred before-neither in Ireland nor Portugal. [...] This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed.’

Since then another round of ‘last ditch’ talks ended without any progress being made, but another gathering has been scheduled for Saturday.

Will Saturday’s Discussion’s Decide Greece’s Fate and Impact EUR/USD, EUR/GBP Exchange Rate Trading?

Both the Euro to US Dollar and Euro to Pound Sterling exchange rates could experience considerable volatility over the weekend as markets wait with baited breath for the latest Greek news. If the nation does manage to come to terms with its lenders we can expect the Euro to surge across the board. However, if Greece fails to get funding before Tuesday, we could see the EUR/USD, EUR/GBP exchange rates tumble.

The GBP/EUR exchange rate was trending in the region of 1.4077 on Friday

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