Pound Sterling Euro Exchange Rate Forecast Higher: GBP EUR Hits 1.41 Best Exchange Rate

July 14, 2015 - Written by John Cameron

STORY LINK Pound Sterling Euro Exchange Rate Forecast Higher: GBP EUR Hits 1.41 Best Exchange Rate

Steps Taken Toward Greek Bailout but Euro Broadly Declines, EUR/GBP, EUR/USD Lower

The deep undercurrent of distrust between Athens and Berlin did not stop the eurogroup of Finance Ministers from agreeing in principle a third bailout deal for Greece during early trading in the currency markets yesterday.

However, an agreement in principle is one thing – getting the necessary legislation passed by the Athens government is quite another, especially given the contentious content of the proposals which include a wholesale programme of privatisation of public sector enterprises aiming to raise some €50bn. The proceeds of this scheme will be held in a segregated bank account overseen by the European Central Bank which Greece’s government will not have full access to. Needless to say, it will be tough to get such measures past an Athens parliament which is currently controlled by the hardline left wing Syriza bloc.

Greece May Reject Deal, British Pound Could Hit Best Conversion Rate Against Euro (GBP/EUR) This Week

One insider wrote yesterday that,

‘The new bailout agreement signed by Alexis Tsipras is a humiliation for Greece... the agreement re-establishes and extends the guardianship of the Troika and seals social enslavement’.The commentator goes on to add that, ‘the Greek people must not become disappointed, on the contrary it must remain stubborn, as it did in the referendum and the countrywide protests for a ‘No’ to the very end. A ‘No’ to clash with the bailout, neo-liberalism and austerity which are institutionalized in the euro zone’.

Foreign Currency Exchange Predictions: GBP/EUR Could Trend at 1.41 If Greek Parliament Says No to Austerity

The Pound Sterling euro exchange rate climbed to near to the 1.4100 GBP EUR threshold amid market rumours suggesting that Syriza’s youthful leader will have to re-shuffle his already disparate government in an effort to pass the requisite laws by the Wednesday deadline. Analysts suggest that Tsipras will now struggle to remain in place at Maximos Mansion and that a national government of unity may be required in order to move Greece towards a fresh bailout. The potential for uncertainty is forecast to send the GBP EUR exchange rate higher still in the near-term.

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