GBP/EUR Touches 7 Year High

The pound has reached a more-than seven year high against the euro, a day after the European Central Bank (ECB) began its government bond buying programme.

Sterling rose 0.45% to hit €1.40 for the first time since December 2007.
City analysts said continued fears over a Greek exit from the eurozone helped push the pound higher.
It came after the head of the eurozone finance ministers’ group called on Greece to “stop wasting time” and engage in serious talks on reform.

At a meeting in Brussels on Monday, Dutch finance minister Jeroen Dijsselbloem said there had been little progress made since discussions two weeks ago.

European creditors want to approve a detailed list of reforms before they release any loans to Greece.

Jeremy Cook, chief economist and head of currency strategy at foreign exchange traders World First, said alongside concerns over Greece, the ECB’s bond buying programme and negative bank deposit interest rates were “hammering” the single currency.

The ECB began its €60bn (£42.8bn) monthly bond buying programme on Monday.

On Tuesday, sterling rose to €1.4017 before falling back slightly.

via BBC

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