Volatility Predicted for Pound Sterling to Euro (GBP/EUR), Canadian Data (GBP/CAD) Exchange Rate Anticipated

July 10, 2015 - Written by David Woodsmith

STORY LINK Volatility Predicted for Pound Sterling to Euro (GBP/EUR), Canadian Data (GBP/CAD) Exchange Rate Anticipated

Signs of Bailout Agreement for Greece Cause Pound Sterling to Euro (GBP/EUR) Exchange Rate Declines

The noises from Brussels have improved over the past 24hrs, leading many analysts to agree with Ireland’s Finance Minister Michael Noonan’s assertion of yesterday that the chances of a fresh Greek debt deal before Sunday night’s deadline now stands at above 50%.

Renewed optimism for a fresh Greek accord was fuelled by yesterday’s newspaper reports which suggested that the new plan which Greece’s policymakers are working on, with help from France’s delegation, will include plans for up to €12bn worth of domestic tax increases and spending cuts. If these figures are correct they would be of acute significance, given that the last debt plan put forward by the Brussels group during the latter part of last month, which was resoundingly rejected by Greek votes in last week’s referendum, contained proposals for a lower level of austerity.

GBP, EUR, USD, CAD Exchange Rates Fluctuate on FOMC Minutes, Greek Developments

However, other analysts remain unconvinced about the chances of a deal, suggesting that the most likely outcome of the long drawn out negotiations will be a temporary exit from the euroland for the Hellenic state. The driver for such a move would be Germany’s voters – the Teutonic nation’s policymakers remain acutely aware that any leniency on Greece will not play well with the nation’s voters and a short term abandonment of the shared currency by Athens, combined with the provision of humanitarian aid from the European Union, would send a stark message out to the bloc’s other peripheral states that failing to stick to debt arrangements carries a moral hazard.

BoE Left Interest Rates on Hold, GBP/EUR, GBP/USD, GBP/CAD Currency Market Movement Limited

Elsewhere, there were no surprises yesterday when the Bank of England (BoE) opted to maintain its current monetary policy stance. Meanwhile, the primary risk event of note during today’s session comes from Canada with the publication of June’s domestic unemployment data. A slight increase in the overall level of Canadian joblessness is anticipated; analysts forecast that anything better than this would provide fuel for a drop-off in the Pound Sterling Canadian Dollar exchange rate GBP CAD.

Canadian jobs data could boost CAD/GBP, CAD/USD exchange rate trading

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