Why has the Euro weakened on the back of good news in Greece?

Many a seller of Euros has been waiting for this point. For a deal to finally be reached on Greece. The expectation was for this event to cause the Euro to rise against its counterparts but instead we have seen the opposite, why is this? Just what has caused GBPEUR and EURUSD to get even worse for Euro sellers?

The removal of uncertainty over Greece has essentially given rise to a boost of confidence in other countries like the US and the UK. With the removal of uncertainty over Greece it makes it much more likely the Bank of England and the Federal Reserve in the US will raise their base interest rates later this year.

Market uncertainty has been severely raised over the mismanagement of Greece with investors essentially losing patience! And who can blame them. If I had millions to invest in currency, would I be positioning my funds in Euros or in Sterling? I would have to say sterling because I think the longer term prospects favour the UK (and the US) over the Eurozone.

If you need to move money overseas for a property sale or purchase why not speak to me about your options and what is likely to happen in the future? Please email me Jonny on [email protected] a brief outline of what you need to do and would like information on. If you can leave a phone number I will call you during UK business hours.

Tomorrow could be a key day (again) for Greece with the potential approval of the new bailout. And one thing we have learnt lately on the GBPEUR rate is to expect the unexpected….