Pound to Dollar & Pound to Euro Exchange Rates End Week On High As Greece Fears Re-emerge

Modified: Monday, 2 September 2013 09:46 BST - Written by John Cameron

STORY LINK Pound to Dollar & Pound to Euro Exchange Rates End Week On High As Greece Fears Re-emerge

The Pound euro (GBP/EUR) and Pound US Dollar (GBP/USD) exchange rates finished last week on an uptick. Fears regarding a re-emergence of Greece’s debt crisis and weak US spending data sent both pairs higher.

The Pound euro exchange rate (GBP/EUR) is currently trading up by 0.40% at 1.1755 GBP/EUR. The euro Pound exchange rate is currently trading at 0.8507 EUR/GBP.

The latter part of last week’s session in the currency markets was notable for the re-emergence of a sizable issue which appears to have slipped the minds of investors during recent months – Greece’s ongoing debt crisis. With less than a month to go until German voters cast their ballots in a General Election, the Hellenic state’s fiscal problems have become a key point of difference between leaders of Germany’s political parties during debates and public appearances. Last Wednesday saw current German Chancellor Angela Merkel counsel against any debt write-off for Greece – a political tack which is sure to play well with the rump of the Teutonic nation’s voters who feel that the struggling peripheral nations in the South of the eurozone should be made to pay in full for their errant ways.

Merkel suggested that a cancelling of any amount of Greek debt commitments would leave the door open to similar moves from other euro area nations, triggering a wave of uncertainty throughout the eurozone as a whole. However, the German Chancellor’s pointed failure to rule out further emergency funding for Greece, which could be forthcoming next year when the eurogroup of Finance Ministers are due to review the nation’s progress in dealing with its debt issues, is likely to prove far less popular with German voters. With ‘the Greek issue’ rearing its ugly head once more, the single currency ended last week on a duff note, sending the Pound euro exchange rate (GBP/EUR) up into the mid-1.1700s. This morning’s German PMI Manufacturing data will give the euro further direction – anything below the anticipated showing of 52.0 could send the EUR/GBP exchange rate lower.

Elsewhere, slightly tamer than anticipated Personal Consumption figures, published in the States on Friday afternoon, ensured that the Greenback also ended the week in subdued form, propelling the Pound US Dollar exchange rate (GBP/USD) back towards the middle part of the 1.5500s.

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