Latest FX Rate Conversion News: British Pound Euro GBP EUR Spikes to Highest Since 2007 ? Losses Forecast

Modified: Friday, 17 July 2015 06:28 BST - Written by Frank Davies

STORY LINK Latest FX Rate Conversion News: British Pound Euro GBP EUR Spikes to Highest Since 2007 ? Losses Forecast

Germany to Pass Judgement on Greek Bailout, Euro Could Fluctuate (EUR/USD), EUR/GBP)

Today's Construction Output data for the Eurozone is unlikely to have much of an impact on Euro trading with investors focusing on Germany. The currency bloc's largest economy is due to pass judgement on the Greek bailout later today. Any signs of opposition would weigh on the Euro.

Earlier...

GBP EUR Conversion Rate At Highest Level for 7 1/2 Years Today

The euro slumped to its weakest level against the Pound Sterling since 2007 during early trading today before staging a mini-recovery.

The spike to 1.4362 following ongoing doubts about Greece’s ability to remain as part of the eurozone notwithstanding last night’s vote in Athens to pass the laws necessary to qualify for more bailout funding proved relatively short-lived; by the latter part of the European trading day, GBP EUR was lodged in 1.4200s.

Pound Sterling Falls from Highs after ECB Rate Announcement, EUR/GBP, EUR/USD Gain Modestly

Support for the shared currency on the day was propped up by comments from European Central Bank President Mario Draghi who pointedly observed in his Frankfurt press conference earlier that, ‘things have changed now,’ before going on to assert that, ‘we had a series of news with the approval of the bridge financing package, with the various votes in various parliaments, to begin with in the Greek parliament, which have now restored the conditions for a raise in ELA.’


In a clear case of after-timing, the top man at Europe’s central bank went on to suggest that, ‘we always acted on the assumption that Greece will remain a member of the euro area... there was never a question.’

Many analysts now forecast that the Pound Sterling euro exchange rate will now settle back down below the 1.4000 threshold once more.

RBNZ Rate Decision Drives GBP/NZD Currency Pair to Best Exchange Rate for over 5 Years

Elsewhere, the combined support for the Commodity Dollars took another hit on the day as investors continued to factor-in yesterday’s interest rate cut from the Bank of Canada. Suspicions from market participants that the Reserve Bank of New Zealand (RBNZ) and the Reserve Bank of Australia (RBA) might be about to follow suit pushed the Pound Sterling higher against both the Aussie and Kiwi Dollars sharply higher earlier. The Pound Sterling Australian Dollar exchange rate peaked at a fresh 6 and a bit year high of 2.1252 GBP AUD last night before peeling back down today. Meanwhile, GBP NZD struck its highest level since September 2009 earlier as investors predicted that RBNZ will be the next to blink.

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: Euro Forecasts Euro Pound Forecasts Pound Sterling Forecasts