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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 [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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