Sterling Strengthens Against Euro as Greek/Euro Stalemate Continues
All eyes are on Greece as talks yesterday failed to reach any sort of breakthrough at a Eurogroup meeting. We have until the 30th June for there to be a compromise and as time runs out yet again we are looking for another 11th hour compromise. To that end, Eurozone finance ministers continue to meet in Luxembourg today and on Monday EU leaders will hold an emergency meeting to try to resolve the situation.
Whilst the market is jittery, Angela Merkel is keen to play a key role in bringing all parties together as a Grexit could ruin the German plans for the Eurozone. In Greece, there is pressure to find a solution and we are seeing a run on the Banks where people are taking their funds out of Banks as they believe their money is safer in shoeboxes under the mattress.
Otherwise, markets are trading as previously with Sterling still gaining against the Euro in particular as results continue to impress. With the Greek crisis casting a long shadow over the markets, we are seeing a tiny bit of stability and strength in the Dollar as it regains its safe haven status. We are expecting more Dollar strength short-term as Yellen’s speech is continually dissected and maybe she was not being so negative towards an impending rate hike.
Market data is light today but all eyes are on Greece so there could be more volatility on the back of rumours.
Have a good weekend!