Forex Forecast: Euro to Pound Sterling (EUR/GBP) Exchange Rate Weekly Roundup ? June 15 - 19

June 21, 2015 - Written by Admin

STORY LINK Forex Forecast: Euro to Pound Sterling (EUR/GBP) Exchange Rate Weekly Roundup ? June 15 - 19

EUR to GBP, USD Exchange Rates Fluctuate this Week

Greece dominated the headlines last week and as a result the Euro to Pound Sterling (EUR/GBP) exchange rate was weakened as a consequence. Time is running out for Athens to reach a deal with its creditors and fear is rising across Europe due to the implications of Eurozone member defaulting on its debt repayments to the International Monetary Fund (IMF). The Greek central bank warned for the first time that the nation could on course to experience a ‘painful’ exit from both the Eurozone and European Union.

Euro (EUR) Exchange Rate Tumbles on Greek Woes, GBP/EUR Hits 1.40

At the start of the week, the Euro weakened against its major peers as talks between Greece and its creditor’s ended failure at the weekend. A meeting between the two sides broke up under an hour, with negotiators unable to reach any agreement on pension reforms, budget targets and tax rates.

The Pound Sterling was trading in the 1.38 region against the Euro as concerns over Greece continued to weigh upon the single currency. Sterling was trading in a narrow range due to a lack of domestic market moving data releases.

On Tuesday, the Pound made further gains as data released by the Office for National Statistics (ONS) showed that the nation’s UK inflation rate turned positive in May. Inflation was shown to have risen by 0.1% in May, up from the -0.1% figure recorded in April.

‘Last month CPI turned negative, mainly because of falling transport fares due to the timing of Easter. This month, that fall has been reversed. The falls in food and fuel costs over the past year have eased this month, helping to push inflation up,’ said ONS statistician Philip Gooding.

EUR Exchange Rate Could Soften against AUD, GBP, NZD, USD Next Week as No Deal In Sight For Greece

As the week progressed, the Euro continued to decline against the bulk of its major peers due to rising concerns over a possible Greek default and exit from the Eurozone. Tuesday’s ZEW economic sentiment index fell from 61.2 to 53.7 as worries over the crisis weighed.
The Pound Sterling was trading near the 1.40 level against the Euro on Thursday as concerns over Greece continued to boost demand for safe haven assets.

As the week ended, the Euro weakened further against the Pound Sterling and other major peers after a meeting of European finance ministers ended in failure.
The Pound Sterling advanced above the 1.40 level against the Euro and more gains are expected as the chances of a ‘Grexit’ increased.

The Greek crisis will continue to dominate sentiment towards the single currency next week. If no deal is reached then the Euro will fall further against the Pound Sterling and other major currencies.

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