Newsflash: Pound Sterling to Euro (GBP/EUR) Exchange Rate Declines Ahead of Referendum
Although the UK’s Construction PMI printed more strongly than expected on Thursday, the Pound Sterling to Euro (GBP/EUR) exchange rate still shed around 0.4% on the day’s opening levels.
The Euro was supported by the news that the Greek Prime Minister believes a ‘No’ vote would help him get what he wants from creditors. The fact that the ECB didn’t reduce its level of support to Greek banks also kept the Euro trending higher against the Pound.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.4075
Earlier…
As Greece became the first developed nation to enter arrears with the IMF, the Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates declined.
Euro to Pound Sterling (EUR/GBP) Exchange Rate News – Euro Falls 100 Pips after Greece Defaults on IMF Payment, Grexit Could be Avoided with Bailout Talks Taking Place Today
Both the Euro to Pound Sterling (EUR/GBP) and Euro to US Dollar (EUR/USD) exchange rates tumbled as the European session opened on Wednesday and investors processed the news that Greece is now the first developed nation to ever fail to meet its debt obligation to the International Monetary Fund (IMF).
Given recent commentary from Greek Prime Minister Alexis Tsipras and the fact that the nation’s bailout also expired on Tuesday, the development was largely expected but it still had a detrimental impact on Euro demand.
News that Greece’s CCC credit rating was downgraded to CC by Fitch also weighed on the common currency.
However, the latest reports indicate that Eurozone ministers are open to discussing a last-minute aid request from Greece. If the aid is granted, Greece may suspend Sunday’s referendum and reduce ‘Grexit’ fears.
That being said, German Chancellor Angela Merkel has asserted that no aid request will be considered until after Sunday’s vote.
The Euro to Pound Sterling (EUR/GBP) exchange rate fell to a low of 0.7059
Euros (EUR) Donated to Crowdfunding Project to Save Greece – Over €1,000,000 Raised So Far
While Greek officials dither about whether or not to hold a pivotal referendum on Sunday and attempt to come to terms with the nation’s creditors, the public are taking a more proactive approach to the situation.
Frustration over five months of backbiting, delays and few results has led to one UK-based individual starting a Crowdfunding project to help the nation get back on its feet.
As Thom Feeney states: ‘The European Union is home to 503 million people, if we all just chip in a few Euro then we can get Greece sorted and hopefully get them back on track soon. Easy. €1.6bn is what the Greeks need. It might seem like a lot but it’s only just over €3 from each European. That’s about the same as half a pint in London. Or everyone in the EU just having a Feta and Olive salad for lunch.’
So far his attempt to help get Greece back on its feet has raised €1,328,994. This might be a microscopic percentage of the amount needed, but the money is coming in pretty fast.
Clearly the rewards for donating are going down a storm. A pledge of €3 will get you a postcard of Greek Prime Minister Alexis Tsipras (lovely), while a €6 donation could see you enjoying a tasty Greek feta and olive salad. For just €10 you’ll be sent a ‘small’ bottle of Ouzo. Quite exciting incentives to get behind saving a nation from financial collapse!
Pound Sterling to Euro Exchange Rate Falls from 2015 Best, GBP/EUR, GBP/USD Gains Trimmed after UK Manufacturing PMI Prints Below Forecast – Slowest Rate of Growth for Two Years
The Pound Sterling to Euro (GBP/EUR) exchange rate rallied to a high of 1.4154 early Wednesday morning as investors responded to the latest Greek developments.
However, the GBP/EUR pairing fell back to 1.40 and the Pound Sterling to US Dollar (GBP/USD) exchange rate slumped to 1.5646 after the UK’s Manufacturing PMI disappointed expectations.
It had been hoped that the gauge of manufacturing would rise to 52.5 in June, but it actually printed at 51.4 – down from a negatively revised reading of 51.9 in May.
Markit economist Rob Dobson said of the data; ‘However, with manufacturing still in a growth funk, the UK economy will be even more reliant on other sectors, such as services, to deliver solid growth in quarter two. It is also disappointing that for a nation now steeped in rebalancing rhetoric, it seems as if domestic consumer-driven expansions remain the norm.’
Euro to Pound Sterling (EUR/GBP) Exchange Rate Forecast: Greece Still the Word, Bailout Discussions in Focus, UK Services PMI Ahead
The Euro to Pound Sterling (EUR/GBP) exchange rate may continue moving away from its lowest levels of 2015 in the hours ahead if Greece’s creditors agree to grant the aid demanded by the nation in return for its suspending Sunday’s referendum.
However, should the week’s remaining UK data (tomorrow’s Construction PMI and Friday’s Services PMI) print positively; there is a chance that the Pound Sterling to Euro (GBP/EUR) exchange rate might ascend once more to the dizzy seven-year highs achieved on Monday.
Further flat figures would be Sterling-negative.
Current Euro (EUR), Pound (GBP), US Dollar (USD) Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4069, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5664, the Euro to Pound Sterling (EUR/GBP) exchange rate was trending in the region of 0.7116 and the Euro to US Dollar (EUR/USD) exchange rate was trending in the region of 1.1151.