Greek Tragedy: GBP/EUR breaches 1.42
Quote of the day: “The only way to learn it is to do it”
June 29th: Highlights
- Greece closes banks for the week after bailout talks break down
- Euro exchange rates plummet following Greek tragedy
- GBP/EUR hovering around 1.42 mark
- EUR/USD falls through 1.10
- GBP/USD 1.569
As Greece continues to take punch after punch (or, some may see it, continues to punch itself), GBP continues to climb against the single currency. GBP/EUR briefly breached the 1.42 mark. It is now trading around 1.4170.
Direction on GBP/EUR will likely depend on whether Greece comes to an agreement with its creditors, and the incoming UK economic data that will be released this week. Among those data are Q1 GDP numbers and Manufacturing and Construction PMI.
GBP/USD was trading at 1.5746 late on Friday, pretty much unchanged for the whole of the day. At the time of writing, the GBP/USD pair is trading around the 1.5690 mark.
Last night, Greek PM Alexis Tsipras decided to close all Greek banks today after the European Central Bank decided to cut off the liquidity lifeline to Greece that had been in place for months. The ECB decision came as a result of Tsipras’ institution of a referendum for next Sunday on whether to accept the terms of Greece’s creditors. As the banks are closed, market analysts and Greek citizens fear that further capital controls may be put in place.
As a Grexit looms, EUR is crashing, with EURUSD diving below 1.10. If an agreement does not come about this week, analysts predict the Single Currency could sink to new lows as it experiences the principal shock of a Greek economy on its last breath.
With increased GBP/EUR volatility expected, log on and compare live euro quotes today. You are also more than welcome to get in touch with your Personal Currency Concierge to discuss any urgent transfers.
Release of key US economic data this week, should they prove positive, could further bolster a USD fresh off a week of big gains. The US Nonfarm Payrolls report is due Thursday, and this, in addition to Greece and other economic data, could cause some USD movement.
AUD took a little hit last week along with the Chinese stock market, and AUD/USD fell to .76.
Keep an eye on the Swiss Franc. CHF could regain some of its previous status as a safe European currency given the volatility EUR will likely experience this week. CHF/EUR hit .9688.
Have a great day!
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