Pound to Euro Forex Exchange Rate - Forecasting GBP/EUR Losses

February 11, 2015 - Written by John Cameron

STORY LINK Pound to Euro Forex Exchange Rate - Forecasting GBP/EUR Losses

Currency News UK Presents The Pound to Euro Forecast on Exchange Rate Markets

Markus Kerber, the Chief Executive Officer of the Federal Association of German Industry, used an interesting turn of phrase in describing the way Greece’s new leadership has been acting during recent days; the Teutonic law man stated earlier today that, ‘their behaviour is the behaviour of someone from whom you would not buy a second hand car.’

The German lawyer cuts an interesting figure – he unsuccessfully attempted to get the bailouts of Ireland, Portugal and Greece declared illegal four years ago and now appears to be acting in a capacity as the German government’s unofficial spokesman.

He expanded on his viewpoint earlier on, stating that, ‘the German Finance minister has clearly stated that if the Greeks don't come back to reason then it will be over. The Greek government gave us the impression that they are not extremely serious about honouring their debt.’

The markets certainly appear to be of the same viewpoint as Kerber; market participants heavily sold off the euro (currency:EUR) earlier today, sending the Pound Sterling to euro exchange rate all the way up to a fresh 7 ½ year peak of 1.3540 GBP EUR during this morning’s session.

Latest Pound Exchange Rates (11/02/2015)

The Pound to Euro exchange rate converts -0.23 per cent lower at 1 GBP is 1.34502 EUR.
The Euro to Australian Dollar exchange rate is +0.85 pct higher with a conversion rate of 1 EUR equals 1.46664 AUD.
The Euro to Pound Sterling exchange rate today is converting +0.23 per cent higher at 0.74348 EUR/GBP.
The Euro to US Dollar exchange rate converts +0.11 per cent higher at 1 EUR is 1.13309 USD.

Greece Situation Dictates GBP/EUR Exchange Rate

The Pound Euro exchange rate is likely to experience significant movement during the next few hours as news emerges from Brussels where the eurogroup of Finance Ministers are hearing the Greek administration’s plans for re-jigging the terms of its existing debt agreement with the EU / ECB / IMF ‘Troika’.

Many commentators, including Kerber, feel that Greece’s leaders are effectively hitting their heads against a brick wall and that the euroland’s policymakers will not be willing to budge an inch.

However, following US President Barack Obama’s words of earlier this week encouraging Europe’s leaders to come to a workable agreement with Athens, there is a chance that the Greek representation will come away from Brussels with a positive result.

In such a situation, analysts forecast that the pound to euro exchange rate will peel back down towards the psychologically key 1.3000 threshold once more.

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