EUR/GBP: Eurogroup Puts Off Aid for Greece; Gives More Time to Hit Austerity Targets

In yesterday’s European trading session, the Euro gained versus the Great British pound as it found little support from the Eurogroup meeting, wherein the officials decided to give more time for the indebted country to meet austerity targets to reduce the country’s debt burden. However, gains of the single currency were only limited as the Eurogroup put off its Greek aid-decision until its meeting next week. In today’s European exchanges, market sentiment is likely to be inclined to the negative, thereby seen to weigh on the EUR/GBP.

Hopes of the next Greek bailout payment waned when the Eurogroup officials at their meeting yesterday, agreed to hold off their decision of extending financial assistance to Greece. Instead, they gave an extension to the Hellenic Republic to meet austerity targets for its budget deficit to narrow. The country’s international lenders are also said to work on making the Greece’s debts sustainable in the next ten years. Eurogroup Head Jean-Claude Juncker and European Monetary and Economic Affairs Commissioner Olli Rehn lauded the efforts of the Greek government to secure approval of fresh rounds of austerity measures needed to unlock the next tranche of loans. However, International Monetary Fund Director Christine Lagarde said that there are still chapters remaining unsettled. The Eurogoup officials are set to meet next Tuesday and decided whether or not to grant the release of funds to Greece.

Meanwhile, the Pound is expected to gain on signs that the housing market is stabilizing after being propped up in the previous month. Seen as a much better alternative than the shared currency in times of economic uncertainties, the Pound is set to advance versus the common currency, making a sell position a better choice in today’s European trades.

For more news, analysis, technical charts and candlestick analysis, visit AlgosysFx Forex Trading Solutions