It was announced overnight that the pro bailout party in Greece have won the countries much anticipated elections. The New Democracy party won 29.7% of the vote with the anti-bailout Syriza party coming in a close second with 26.9% of the votes. World leaders have welcomed this news stating that keeping Greece in the Eurozone is the “best guarantee” to overcome tough economic and social challenges, in fact the US stated that it was in everyone’s interest for Greece to remain in the Euro area. The news has been taken well by the markets with stock markets up and Euro exchange rates rallying against most the major currencies. As a result we could now see Sterling Euro exchange rates fall back down towards the 1.20 mark as confidence returns to both Greece and Europe. Having said that this result is not a guarantee that the single currency economy will make a full and swift recovery as the economic issues continue to worsen with many countries facing rising unemployment, banking issues and low to no growth.
Once the New Democracy party finally forms the coalition government and then settles into power it will be interesting to see what they do in terms of the current austerity measures and how they try to get the country out of the current mess it is in. The market could be incredibly volatile over the coming weeks and months and is going to remain unpredictable, so if you need to transfer money abroad and are looking for great exchange rates make sure you speak to one of our experienced currency brokers today – call us on 0800 328 5884 or email me directly on firstname.lastname@example.org.