The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates remained in a tight range on Monday as creditors offered Greece a six-month bailout extension and investors awaited the US Chicago Federal Reserve National Activity Index and Existing Home Sales stats later in Monday’s trading.
The situation in Greece has been a slow developing one, but it seems as if it’s now unravelling fast. Perhaps scared by Greek Prime Minister Alexis Tsipras’ speech last week in Russia, creditors have now offered the nation additional funds for the next six months to continue negotiations.
"Such confusion during night w/alternative versions of #Greece proposal coming in; there hasn't been proper preparation," says @NoonanLive
— Peter Spiegel (@SpiegelPeter) June 22, 2015
Emergency summits are taking place on Monday and many investors are hoping for a deal.
Barclays’ forex strategist Shinichiro Kadota commented: ‘Today will supposedly be the last round of negotiations, so there could be a possible surprise in the form of an agreement with both parties seeing the writing on the wall. Still, it is unclear when and if an agreement will be reached, and the Euro will remain sensitive to headlines over Greece.’
The full scorecard of measures from the Greek reform/bailout proposals today. VAT reform and pensions raise the most pic.twitter.com/FaWo87dYbe
— Ed Conway (@EdConwaySky) June 22, 2015
Last week Greek PM Alexis Tsipras announced in St Petersburg: ‘The EU should go back to its initial principles of solidarity and social justice. Ensuring strict economic measures is leading us nowhere. The so-called problem of Greece is the problem of the whole European Union.’
‘We are now in the middle of a great storm. But we are a seafaring nation that knows how to navigate through storms and is not afraid of heading to new seas and reaching new harbours.’
The rest of the day could be a highly interesting one for the Euro to US Dollar (EUR/USD) and Euro to Pound Sterling (EUR/GBP) exchange rates as negotiations take place.
Today's #Eurogroup welcomed "positive steps" of Greek authorities. View to final agreement later this week. #Greece pic.twitter.com/zRTcGSmBlt
— EU Council (@EUCouncil) June 22, 2015
The Euro to US Dollar (EUR/USD) exchange rate is trending at 1.1327.
The Euro to Pound Sterling (EUR/GBP) exchange rate is trending at 0.7146.
US Dollar to Euro (USD/EUR), US Dollar to Pound Sterling (USD/GBP) Exchange Rate Forecast: Fed National Activity Index, Existing Home Sales Data Ahead
Meanwhile, the US Dollar (USD) is in for a moderately influential day on Monday with the release of the US Chicago Federal Reserve National Activity Index and US Existing Home Sales data. In May, US Existing Home Sales are expected to climb by 4.8%, following the previous month’s -3.3% reading.
The Chicago Fed National Activity Index is forecast to come in at 0.16 in May, after April’s -0.15.
Additionally, the US Dollar (USD) will be influenced by any speculation surrounding the Federal Reserve and interest rate hikes.
The US Dollar to Euro (USD/EUR) exchange rate is trending in the region of 0.8830.
The US Dollar to Pound Sterling (USD/GBP) exchange rate is trending in the region of 0.6308.
Pound Sterling (GBP) Exchange Rate Forecast: Sterling to US Dollar (GBP/USD), Pound to Euro (GBP/EUR) Exchange Rates in for CBI Data Movement
The Pound (GBP) exchange rate is in for an extremely quiet week with a severe lack of influential data due for release. Monday will be completely free of UK ecostats while Tuesday will see the publication of the CBI Trends Total Orders and Trends Selling Prices stats.
Any favourable data this week could help to bolster the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending in the region of 1.5855.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3999.
