This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. For current live exchange rates click here.

Will Greece and the Eurozone come to an agreement?

At the end of the trading period on Friday Greece where given a two day window to prepare a preliminary list of economic reforms to present to Eurozone ministers on Monday evening. The Syriza party have indicated the reforms will crack down on tax evasion and improve its civil service. Furthermore if the reforms are approved by the Eurozone ministers Greece will be granted an additional four month extension on the current bailout agreement and therefore will not run out of money in the upcoming weeks. In addition to this they will also have an additional 4 months to renegotiate their bailout terms.

In recent market reports I have been of the opinion that Eurozone and Greek ministers would come to an agreement and the bailout would be renegotiated. In recent days my thoughts have not changed and there are two main reasons for this.

Firstly, if Greece left the Eurozone it wouldn’t be long until bets where placed on which country would be next to follow. With the strong austerity measures implemented by the Eurozone on countries such as Ireland, Spain and Portugal, im of the opinion it would be one of the three and possibly the start of the end for the Euro. Secondly Finance Minister Yanis Varoufakis has agreed to a four-month extension of the current bailout. This is something he swore he would never do, as he wanted to put an end to austerity in Greece. Therefore it’s important to realise Yanis Varoufakis and Greece want to be a part of the Eurozone and will therefore in my opinion do what it takes to stay.

On Friday GBP/EUR dropped by a cent when news escalated that Greece had been given a two-day window.  Therefore if the reforms are accepted on Tuesday, when Mario Draghi head of the European Central Bank makes his speech, I think the volatility surrounding the Eurozone will be eliminated for the time being and GBP/EUR exchange rates will fall to the 1.32s. Therefore anyone looking to buy Euros in the upcoming weeks should seriously think about trading today before the seven-year high trading levels may possibly fall.

Sterling and USD Forecast

It’s a fairly quiet week for Sterling with Friday being the most influential day.  Gross Domestic Product figures are to be released at 9.30am, which is a measure of total value of all goods and services produced by the UK. If there is a rise from previous this will show growth within the UK economy and would therefore be seen as positive for the Conservative party leading up to the election.

The USD has a busy week ahead. On Tuesday and Wednesday at 3pm Janet Yellen head of the Fed is to make a speech on the current economic situation within the US. This could be a key indication to when the US will raise interest rates.  Following this, on Thursday the US will release Consumer Price Index  (Inflation) and Gross Domestic Product figures. If these pieces of economic data come in positive we could see sterling lose some of its recent gains against the dollar, therefore it might be wise to discuss any GBP/ USD transfers you may have with a trader today.

Here at FCD we have a team of professional currency experts who can help assist with any currency transfers which will achieve you much better rates than through your bank. For more information please call 0044 1494 725 353 or alternatively email me directly at drl@currencies.co.uk.

Canadian Dollar Update

With the Loonie weakening dramatically in recent times due to the drop in oil prices (Canada’s largest export), it will be interesting to see how Stephen Poloz Governor of the Bank of Canada tries to counter act this testing time for the currency, when he publicly speaks on Tuesday evening (7pm). I believe there are no words which will counteract the falling oil prices therefore we could see further weakness for the Canadian Dollar. If you are looking to purchase the Loonie, there may be a window of opportunity to place a limit order before the close of play on Tuesday.

For advice on a limit order or other contract options available feel free to visit our website by clicking here or alternatively call free phone 0800 328 5884.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.