Best Conversion Rate of 1.4200 Expected for Pound Sterling Euro Exchange Rate, GBP USD Predicted Lower

July 13, 2015 - Written by John Cameron

STORY LINK Best Conversion Rate of 1.4200 Expected for Pound Sterling Euro Exchange Rate, GBP USD Predicted Lower

Pound Sterling to Euro (GBP/EUR) Close to Best Exchange Rate of 1.41

The Pound Sterling to Euro (GBP/EUR) exchange rate was able to trend just below the 1.41 level on Monday as Greek concerns limited Euro demand. If today's ZEW Current Situation and Economic Sentiment measures for the Eurozone and its largest economy show a decline in confidence, the Euro could fall further.

Earlier...

GBP to USD Exchange Rate Closes Above Technical Support, Fed Hints at 2015 Interest Rate Increase

The weekend market shutdown saw investors re-focus on the world’s premier economy as the prospect of an imminent Greek exit from the eurozone initially receded.

US Federal Reserve Chair Janet Yellen stated on Saturday that, ‘based on my outlook, I expect that it will be appropriate at some point later this year to take the first step to raise the federal funds rate.’

Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Decline to 1.50 this Week

The strong suggestion from Yellen that her Bank will be tightening its monetary policy this side of Christmas is forecast to send the Pound Sterling US Dollar exchange rate lower as this week’s trading session gets underway. GBP USD ended last week at 1.5514 and the comments from the Head Honcho at the Fed have the potential to send the pair trending lower towards the 1.5000 GBP USD threshold once again.

Greek Discussions Send Pound Sterling to Euro (GBP/EUR) Exchange Rate Climbing Today

Meanwhile, when the markets shut on Friday, analysts were almost unanimously anticipating the weekend announcement of further bailout funding for Greece from its creditors. However, matters did not go exactly as expected and the eurogroup instead decided to force Greece to pass further austerity laws before Wednesday in order to qualify for the further emergency liquidity which will allow it to avoid bankruptcy. The problem with this time schedule is that the events of the past ten days appear to have weakened the majority coalition partner Syriza bloc’s hold on power.

Nikos Bistis, a long-standing centre-left Greek parliamentarian, told reporters yesterday that, ‘what is sure is that we are going to have dramatic political developments,’ and went on to state that, ‘basically Syriza is now split in two.’

Foreign Exchange Forecast: GBP/EUR Predicted to Climb to 1.40 this Week

The situation represents a clear and present danger to the single currency and analysts predict that the Pound Sterling euro exchange may track Northwards towards the 1.4000 GBP level in the near term, particularly if the noises from Athens over the next 48hrs are less than positive.

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TAGS: Dollar Pound Forecasts Euro Forecasts Pound Euro Forecasts Pound Sterling Forecasts