Exchange Rate News : New Leaders in Greece and Italy Push Global Share Markets Higher, While GBP EUR Rate Heads Lower

November 14, 2011 - Written by John Cameron

STORY LINK Exchange Rate News : New Leaders in Greece and Italy Push Global Share Markets Higher, While GBP EUR Rate Heads Lower

The Pound Euro exchange rate (GBP EUR) is 1.1653. The Pound Dollar exchange rate (GBP USD) is 1.5998. The Pound Australian Dollar exchange rate (GBP AUD) is 1.5566.

The past week has seen a changing of the guard for two of the Eurozone’s most debt-burdened economies. Both Greece and Italy will begin the week with new leaders at the helm, as former European Union Commissioner Mario Monti steps into the shoes of erstwhile Italian premier Silvio Berlusconi.

Italy has followed the path set by Greece last week, when they named the cerebral Lucas Papademos as the leader of a new ‘unity government’. Papademos succeeds George Papandreou, who appeared to be increasingly losing his touch in recent weeks, following his failed call for a Greek referendum on the terms of the country’s EU bail-out. Papademos has convincing credentials, having formerly been the Governor of the Bank of Greece from 1994 to 2002 and subsequently the Vice President of the European Central Bank.

The markets have reacted positively to the introduction of the two experienced financial operators, with Hong Kong’s Hang Seng index gaining almost 2% overnight, a similar amount to the gains enjoyed by the North American indices during last Friday’s session. This suggests that investors feel that Papademos and Monti will have the necessary clout to lead technocratic governments which will implement the austerity measures necessary to steer their respective economies away from the brink.

Leadership changes in Greece and Italy have seen the Pound Euro rate (GBP EUR) pull back from last week’s 8-month high of 1.1785 to trade into the mid-1.16s in early trading today.


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