The Pound Sterling to Euro (GBP/EUR) exchange rate softened
slightly as the session progressed due to the European Commission
revised its Eurozone growth forecasts for 2015 and 2016.
Earlier the Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a session high of 1.340 on Thursday as concerns over Greece weighed upon the single currency.
‘This is clearly the ECB signalling to the Greek government: You’re going to have to talk to international lenders in the troika and get a deal. Otherwise, really bad things are going to happen,’ said Jacob Kirkegaard from the Peterson Institute for International Economics.
The Greek government reacted by saying; ‘Greece does not aim to blackmail anyone but will not be blackmailed either. The ECB’s decision is an act of political pressure to quickly reach a deal.’
Following the announcement by the ECB, shares in Greece’s largest banks tumbled by more than 25% as it spooked the Athens market.
The ECB’s stance could also be seen as about turn after Greece’s new finance minister Yanis Varoufakis came from a meeting with ECB president Mario Draghi who apparently said that the central bank would do whatever it can to support Greece.
Read more Click here / www.trade4x.net
Earlier the Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a session high of 1.340 on Thursday as concerns over Greece weighed upon the single currency.
Greece Looks Isolated
A standoff between Greece and its creditors now looks inevitable after the European Central Bank said that it will no longer accept Greek government bonds from banks seeking funding, a move that will now put pressure on the Greek central bank to provide extra liquidity for its lenders.‘This is clearly the ECB signalling to the Greek government: You’re going to have to talk to international lenders in the troika and get a deal. Otherwise, really bad things are going to happen,’ said Jacob Kirkegaard from the Peterson Institute for International Economics.
The Greek government reacted by saying; ‘Greece does not aim to blackmail anyone but will not be blackmailed either. The ECB’s decision is an act of political pressure to quickly reach a deal.’
Following the announcement by the ECB, shares in Greece’s largest banks tumbled by more than 25% as it spooked the Athens market.
The ECB’s stance could also be seen as about turn after Greece’s new finance minister Yanis Varoufakis came from a meeting with ECB president Mario Draghi who apparently said that the central bank would do whatever it can to support Greece.
Read more Click here / www.trade4x.net
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