The Euro to Pound Sterling (EUR/GBP) exchange rate remains at a 7-year low and more losses are forecast over the coming days as Greek Prime Minister Alexis Tsipras vowed to stick to his pre-election pledge to end austerity, something that has set him on a collision course with the Troika.
The Euro to Pound Sterling exchange rate hit a session low of 0.741
According to former Federal Reserve Chairman Alan Greenspan, a Greek exit from the Eurozone is now just a matter time as the nation’s crisis cannot be resolved as long as it continues to use the Euro.
‘I don’t see that it helps them to be in the Euro and I certainly don’t see that it helps the rest of the Eurozone. I think it is just a matter of time before everyone recognises that parting is the best strategy. Greece is in the position that if they do not get additional loans, then they will default and leave the Euro. At this stage, I don’t see any people, who are willing to put up the funds, having been disappointed so often,’ said Greenspan in an interview with the BBC over the weekend.
Greek Prime Minister Alexis Tsipras delivered a speech on Sunday that heightened fears that a deal will not be achieved between Greece and its creditors in the Troika. He insisted that the nation would abandon its bailout programme and seek a loan; something that Greenspan believes is highly unlikely to achieve.
‘I think it is fair to say that the speech given by the Greek Prime Minister Mr Tsipras to his parliament was a long way from being conciliatory. He said that our government’s irreversible decision is to implement in full our pre-election pledges. Just for good measure he added that he would ask for World War 2 reparations from Germany and increase the minimum wage,’ said Gary Jenkins, an analyst from LNG Capital.
Euro Edges Higher on German Data
Despite the mounting concern over a Greek exit from the Eurozone, the single currency edged higher against a number of peers and recovered some ground against the Pound after trade data out of Germany beat economist forecasts.
According to the German statistics office, Germany’s trade surplus hit a record high in 2014 as a weaker Euro aided exports in December. Exports out of the region’s largest economy surged by 3.4%, reversing the -2.2% contraction recorded in November.
Euro Exchange Rate News:
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