GBPEUR exchange rates remain relatively flat today with little data coming out during the trading session. All eyes seem to be focused on the ongoing talks between Merkel and Samaras to discuss the austerity measures required by Germany in order for Greece to receive its next bailout. With the IMF having downgraded many growth forecasts recently they have also commented that investor confidence in the world financial systems has become very fragile since the last report which was published in April.
The recent creation of the European Stability Mechanism with the input of €500bn and a pledge by the ECB to do whatever it takes to protect the single currency has kept the Euro strong against the Pound in recent days but I think we will see a weakening of the Euro during the middle of this month providing us with some good buying opportunities using Sterling to buy Euros.
We are starting to notice a divide between the southern European countries and the northern European countries which is creating a little bit of a tension as economic differences are now becoming more noticeable. this could make things more difficult for the single currency and cause more tension if things do not resolve themselves soon. Indeed, if you ask most people in Greece about how they feel about Merkel’s visit you’ll find that some people are not too happy about the austerity measures being put in place. In fact a total of 7,000 police officer have been employed during her visit, a cost which will surely be born by the Greek taxpayer.
If you have a need to buy or indeed sell Euros please do not hesitate to contact me directly Tom Holian email@example.com or are interested in how the European issue is affecting Australian Dollars please visit our sister site www.australiandollarforecast.com