The Pound Sterling to Euro (GBP/EUR) exchange rate is in for an interesting week ahead with a potential deal being forged between Greece and its creditors, as well as a host of moderately influential Eurozone data releases scheduled for publication.
Greece has been offered a six-month bailout package extension (the current deal is due to run out on June 30th) to allow negotiations to continue. However, whether Greece will accept or not is another matter. The nation seems to have been cuddling up with Russia in recent months, and the friendship threatens to see Greece seek financial aid from a different source.
Greek PM Alexis Tsipras Russia Speech causes Forex Market Discomfort as Investors Forecast Greece/Russia Deal Possibility
Making a speech in Russia on Friday, Greek Prime Minister Alexis Tsipras stated: ‘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.’
However, with creditors offering an extension amid emergency summits taking place today, the market’s become optimistic that a deal will be made.
Financial analyst Connor Campell commented: ‘After a month of interminable claims and counterclaims from each side, there is a bit of excitement on the markets and the genuine semblance of optimism; now this sentiment just has to last the day.’
Eurozone Consumer Confidence, Markit Manufacturing/Services PMIs and IFO Surveys Forecast to Cause Moderate Euro (EUR) Exchange Rate Movement
Meanwhile, by way of data, Eurozone Consumer Confidence will be out later in Monday’s European session and is expected to see a decline from -5.5 to -5.8 in June. If Eurozone confidence does decline the Euro (EUR) exchange rate could drop.
Tuesday will be a more influential day by way of ecostats with the release of Markit’s German, French and Eurozone Manufacturing and Services Purchasing Managers Indexes (PMIs) for June. A favourable figure could offer the Euro (EUR) some significant support.
Wednesday will continue with IFO German Business Climate, IFO German Current Assessment and IFO German Expectations data. Final French Gross Domestic Product (GDP) data will also emerge.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Fluctuate on UK BBA Loans for House Purchase Data
Meanwhile, the UK economy is one of the most muted by way of domestic data releases this week with only one piece forecast to cause some moderate movement. The UK’s BBA Loans for House Purchase stat will be out in Wednesday’s European trading and could influence the Pound Sterling (GBP) exchange rate somewhat.
Other than that, UK CBI Trends Total Orders and Trends Selling Prices data will surface on Tuesday, while CBI Reported Sales will make its way into the market on Thursday. All of the CBI data is expected to cause only very mild movement in the GBP/EUR exchange rate.
The Euro to Pound Sterling (EUR/GBP) exchange rate is trending in the region of 0.7144.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.4000.