Forex Outlook Now: British Pound Euro (GBP/EUR) Exchange Rate Drops ? Gains Predicted for GBP AUD, Best Conversion Ahead?

July 8, 2015 - Written by Frank Davies

STORY LINK Forex Outlook Now: British Pound Euro (GBP/EUR) Exchange Rate Drops ? Gains Predicted for GBP AUD, Best Conversion Ahead?

BoE Interest Rate Decision Ahead ,GBP/EUR, GBP/USD Movement Likely?

The Bank of England is due to deliver its latest interest rate decision today. In light of the recent political uncertainty in Greece and mixed data emerging from the UK, the central bank is unlikely to take any action this time out and no changes to fiscal policy will mean limited Pound movement. Today's German trade data will be of interest.

Earlier...

GBP to EUR Exchange Rate News - Greek Request For Emergency Funding Boosts Euro (EUR) Trading

This afternoon’s news that Greece has submitted a fresh request for emergency funding via the European Stability Fund (ESF) has served to steady the euro (currency:EUR) on the day. The improvement for the shared currency has seen the Pound Sterling euro exchange rate drop back into the 1.3800s and analysts forecast that there could be further losses to come for the pair.

Foreign Currency Forecast: Greece Could Secure Aid & Bolster EUR/GBP, EUR/USD Exchange Rates

The markets were re-assured by the fact that Greece’s new Finance Minister, Euclid Tsakalotos, who is considered more emollient than his combative predecessor Yanis Varoufakis, has requested a three year programme and has promised to present, ‘a comprehensive set of reforms and measures to be implemented in the areas of fiscal sustainability, financial stability, and long-term economic growth.’ These words will have been music to the ears of Greece’s creditors.
Tsakalotos also stated that, ‘Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term’. These comments are less likely to play well with the EU / ECB / IMF ‘Troika’ who are opposed to Greece receiving another debt ‘haircut’ similar to the one it enjoyed in 2012.

FOMC Meeting Minutes Predicted to Cause GBP/USD, GBP/AUD, EUR/USD Currency Market Movement Today

Elsewhere, tonight’s US Federal Reserve minutes of its June monetary policy meeting are likely to prove market-moving. Given the rumblings from Athens over the past month, it would appear unlikely that the memos will reveal that the Fed’s policymen made any firm commitments to an interest rate hike last month. If the minutes do indeed reveal that the US central bank’s ‘easy money’ policy is set to continue in the medium term, then expect global share markets to register respectable gains and the high-yielding Commodity Dollars to stage a comeback. The Australian Dollar (currency:AUD) will be afforded further direction by tonight’s local jobs figures. Analysts forecast that the keynote labour market numbers will show a slight increase in the overall level of Australian employment. Such news would send GBP AUD higher.

The GBP/AUD exchange rate is currently trending in the region of 2.0628

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TAGS: Daily Currency Updates Euro Forecasts Pound Australian Dol Forecasts