Pound Sterling To Euro Exchange Rate Forecast ? GBP EUR Dips As Greece's Parliament Passes Austerity Package

February 13, 2012 - Written by Frank Davies

STORY LINK Pound Sterling To Euro Exchange Rate Forecast ? GBP EUR Dips As Greece's Parliament Passes Austerity Package

The Pound Euro exchange rate (GBP EUR) is 1.1909. The Pound Dollar exchange rate (GBP USD) is 1.5839. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4646.

Greece’s parliamentarians last night passed the latest austerity package for the troubled country following a heated debate which lasted late into the night, as civil unrest escalated in the streets surrounding the parliament building in Athens.

The austerity measures, which were demanded by EU/IMF/ECB officials in order for the troubled Hellenic state to qualify for the next €130bn tranche of emergency bail-out funding, included a slashing of the country’s minimum wage by over 20%, the laying off of some 15,000 government workers and an alteration to employment legislation to make it easier for employers to sack their workers.

The eurogroup of finance ministers issued Greece with an ultimatum to acquiesce to their demands by Wednesday of this week. A failure to pass the measures in parliament would almost certainly have lead to Greece being unable to honour €14.5bn of existing debt commitments which come to maturity on 20th March, precipitating a potentially calamitous and disorderly debt default.

While all of this goes on, Europe’s single currency has held up surprisingly well in the currency markets; the GBP EUR exchange rate traded down through the 1.1900 level once again during the early part of Friday’s session, to briefly touch off 1.1895. However, Pound Sterling staged a mini-recover following the 0930hrs release of higher than anticipated Producer Price Index data for January, which suggested that UK factory gate prices are on the march upwards once again. This morning's session has started with GBP EUR once again threatening a break down through 1.1900, following last night's positive news from Greece.

For Pound Sterling to Euro currency exchange, exchange rate forecast/updates, other live foreign exchange rates and a money converter please see the currency news website.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Daily Currency Updates Euro Forecasts Euro Pound Forecasts Pound Eu Forecasts