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Sterling’s Value Dips Following Greek Deal (Matthew Vassallo)
Sterling’s value has taken a hit this week, following news that a deal is now in place between Greece and its creditors. This deal was ratified through the Greek parliament after all night talks and the final vote will be taken by Euro finance ministers later today. It does now seem though that Greece will be given the required funds in order to meet their next repayment deadline and the EUR has strengthened against the Pound as a result of this decision.
GBP/EUR rates have dropped approximately 4 cents from the high we saw a couple of weeks ago and this move could signal the end of the Pound’s recent momentum. As such it may be wise to consider your position if you are holding Sterling. It’s been a quiet week for UK economic data releases so we have seen Sterling’s value shift as a result of outside variables, including economic developments inside the Eurozone.
A key question brokers should be asking themselves is whether the Pound is now overvalued and in my opinion it is starting to look that way, particularly against the EUR. Sterling has benefited from the on-going debacle in Greece and the fact we are navigating unchartered territory, means it is very difficult to give a definitive answer on this. In my opinion if you removed the scenario in Greece it is likely we would see GBP/EUR rates trading a few cents lower than the current levels.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on [email protected]
Source: http://www.poundsterlingforecast.com/2015/08/14/sterlings-value-dips-following-greek-deal-matthew-vassallo/
