8 Jul 2015
EUR/GBP rises to test 0.7200 amid Greece ESM letter and UK Budget
FXStreet (Córdoba) - The euro is rising sharply against the pound on Wednesday. EUR/GBP rose further during the last hour on the back of hopes of an agreement between Greece and its creditors and as the Chancellor of the Exchequer presents the budget.
EUR/GBP was trading on Asian hours around 0.7115 and currently is testing the 0.7200 handle. The pair started to move to the upside on European hours and then rose further.
Recently reached at 0.7202 the highest level since June 22 but so far it has been unable to consolidate above 0.7200.
UK: Fiscal policy could affect monetary policy?
During the last months an improvement in economic indicators from the United Kingdom generated expectations that the Bank of England could raise rates sooner than previously expected. But further fiscal tightening could pressure the central bank to wait longer before starting the hike cycle.
EUR: This is it?
Greek government asked today for a new bailout program for three years. The request generated expectations that an agreement could be reach boosting some risk appetite in Europe and favoring the euro that is rising across the board, except versus the yen.
EUR/GBP was trading on Asian hours around 0.7115 and currently is testing the 0.7200 handle. The pair started to move to the upside on European hours and then rose further.
Recently reached at 0.7202 the highest level since June 22 but so far it has been unable to consolidate above 0.7200.
UK: Fiscal policy could affect monetary policy?
During the last months an improvement in economic indicators from the United Kingdom generated expectations that the Bank of England could raise rates sooner than previously expected. But further fiscal tightening could pressure the central bank to wait longer before starting the hike cycle.
EUR: This is it?
Greek government asked today for a new bailout program for three years. The request generated expectations that an agreement could be reach boosting some risk appetite in Europe and favoring the euro that is rising across the board, except versus the yen.