The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Russian Ruble (GBP/RUB) exchange rates could be in for some interesting movement in the next week with a potential financial aid deal being made between Greece and Russia.
Euro (EUR) Exchange Rate (EUR/GBP, EUR/RUB) Forecast to Drop on Greece/Russia Financial Aid Deal
Greek Prime Minister Alexis Tsipras caused concerns on Friday when he made a statement in Russia and investors priced in the possibility of Greece leaving the Eurozone in search of Russian aid.
‘As all of you are aware, we are at the moment at the centre of a storm of a whirlpool, but we live near the sea so we’re not scared of the sea. We are ready to go to new seas to reach new safe ports.’
‘The problem we are facing is deeply rooted in the process I have described. The EU should pursue its own path. The EU should go back to its initial principals of solidarity and social justice. Ensuring strict economic measures will lead us nowhere. The so-called problem of Greece is the problem of the whole European Union.’
If it looks as if Greece could leave the Eurozone, default on its International Monetary Fund (IMF) repayments and seek aid from Russia, the Euro (EUR) exchange rate could sink against other majors such as the Pound (EUR/GBP) and Russian Ruble (EUR/RUB).
However, Monday is expected to see a Eurogroup meeting take place which could cause some additional Euro to Pound Sterling (EUR/GBP) and Euro to Russian Ruble (EUR/RUB) exchange rate movement.
Russian Ruble (EUR) Exchange Rate (RUB/EUR, RUB/GBP) Forecast to Fluctuate on Gross Domestic Product (GDP) Data
Meanwhile, the Russian Ruble (RUB) exchange rate could be in for some choppy trading on account of macroeconomic developments with little data out in the week ahead. However, the Ruble could experience fluctuations on Friday’s Gross Domestic Product (GDP) figure which is forecast to cause some major market movement.
Russia’s economy is currently suffering through a recession (the first in six years) and therefore growth could be stunted in coming months.
Russian President Vladimir Putin attempted to play down the current crisis and instead suggested that the sanctions placed on the nation had ‘boosted’ Russia’s work in ‘import replacement’.
Putin stated: ‘We respond to external restrictions by expanding our freedom and raising the openness of Russia.’
Pound Sterling to Euro (GBP/EUR), Pound Sterling to Russian Ruble (GBP/RUB) Exchange Rate Forecast
The Pound Sterling is unlikely to fluctuate dramatically on domestic data next week with very few ecostats worth noting released.
However, any hawkish comments by the Bank of England (BoE) could cause the Pound Sterling (GBP) exchange rate to rally as investors price in interest rate hikes.
On Friday, the Pound Sterling to Russian Ruble (GBP/RUB) exchange rate was trending in the region of 86.2310.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4012.
Wednesday will see the release of the BBA Loans for House Purchase data which is expected to cause moderate GBP/EUR and GBP/RUB movement.