Both the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Australian Dollar (GBP/AUD) exchange rates gained on Monday as investors responded to the news that Greece had voted against austerity in Sunday’s highly-anticipated referendum. Meanwhile, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate fell by -0.5% due to sliding oil prices.
Pound Sterling to Euro Future Currency Forecast: Greek News Sees GBP/EUR Exchange Rate Trend above 1.41 Today
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced beyond 1.41 during the European session as investors speculated on whether or not the Greek government is likely to secure a deal with creditors in spite of rejecting the recent bailout proposal.
Although Greek Finance Minister Yanis Varoufakis resigned his post immediately after the ‘No’ victory, the heavily indebted nation may not be able to secure aid even without his constant jibes and criticism of creditors’ actions.
Investors are also remaining cautious ahead of tomorrow’s summit of key European leaders, including German Chancellor Angela Merkel and French President Francois Hollande.
As stated by analyst Mujtaba Rahman; ‘Time is running out and the window for a deal keeps narrowing. The Euro leader’s summit on Tuesday is likely to prove decisive for Greece’s membership.’
Pound Sterling to Australian Dollar Exchange Rate Forecast: Demand for Higher-Risk Currencies Falls, GBP/AUD Gains before RBA Announcement
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced beyond 2.08 on Monday as investors ditched higher-risk currencies like the ‘Aussie’ in reaction to the latest developments in Greece.
The Australian Dollar also fell to fresh six-year lows against the US Dollar during the local session.
However, ‘Aussie’ losses were a little limited due to expectations that the recent softening of the South Pacific currency will prevent the Reserve Bank of Australia (RBA) from cutting interest rates at tomorrow’s gathering.
While the Australian Dollar hasn’t fallen quite as low as the RBA would like, its current multi-year slump against peers like the Pound and US Dollar do give the central bank scope to maintain a neutral interest rate policy for the foreseeable future.
In the view of industry expert Bob Gregory; ‘Whether you go lower with rates or not now is not an economic question really. At these low rates, you don’t get anything by going lower, you just go lower because you want to be seen to be doing something.’
While the RBA decision is likely to be the main cause of GBP/AUD exchange rate movement overnight, investors will also be looking to Australia’s AiG Performance of Construction Index and Roy Morgan Weekly Consumer Confidence Index.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast: Sterling softens as India Deemed ‘Well Insulated’ from Greek Fallout
Falling oil prices saw the Pound Sterling to Indian Rupee (GBP/INR) exchange rate hit a low of 98.5380 after falling by more than 0.5% on the day’s opening levels.
While nations like the UK and South Africa are likely to feel some effect from the fallout of the Greek referendum, industry experts view India as pretty well defended against shocks.
Economic advisor Arvind Subramanian noted; ‘This is a drama which is going to play out for sometime. We are well protected in at least three ways. Our macro-economic situation is much more stable. We have [forex] reserves. We are an economy which is still a very attractive investment destination. So I think we are relatively well insulated.’
However, some have pointed out that an outward flight of investment could impact the Rupee.
Friday’s Indian Industrial/Manufacturing Production data could be a further cause of GBP/INR currency volatility.
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4111, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0742 and the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending in the region of 98.6900
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