The Pound Sterling to Euro (GBP/EUR) exchange rate remained in a narrow range on Monday while the Pound Sterling to Turkish Lira (GBP/TRY) exchange rate sank significantly after Turkish Consumer Confidence data printed favourably.
The June Turkish Consumer Confidence stat managed to rise from 64.29 to 66.45, rather than falling to 63.71 as economists had forecast. The figure registered a four-month high and rebounded from a year low in May. It’s not been a fantastic year for Turkish confidence with consumer sentiment dropping to six-year lows in March.
Turkstat, who conduct the survey, stated: ‘The financial situation expectation of household index increased by 2.0% compared to the previous month and became 87.92 in June. This increase resulted from the increase in the ratio of people expecting better financial situation or household in the next 12 months period.’
‘The general economic situation expectation index which was 85.50 in May increased by 4.7% and because 89.48 in June. This increase shows that number of consumers expected a better general economic situation in the next 12 months increased compared to the previous month.’
Euro (EUR) Exchange Rate Forecast: Deal between Greece and its Creditors to see EUR/GBP, EUR/TRY Rally
Meanwhile, the Euro is in for a wild ride on Monday with a potential deal between Greece and its creditors reaching the table. After months of negotiations, very little progress has been made and many investors expected a Greek default to occur at the end of the month when the nation’s current austerity package ends.
Greek Prime Minister Alexis Tsipras arrived at the European Commission for talks with President Jean-Claude Juncker, stating: ‘This is time for a substantial and viable solution which will allow Greece to come back to growth within the Eurozone, with social justice and cohesion.’
It seems as if markets are getting excited regarding the prospect of a deal between Greece and its creditors. However, it’s worth noting that markets have jumped hopefully in the past only to be disappointed by the end of the day.
UK BBA Loans for House Purchase Data Forecast to see GBP/EUR, GBP/TRY Exchange Rates Climb if Favourable
Meanwhile, the Pound (GBP) is in for a quiet day on Monday with a lack of UK domestic data due to emerge. However, any upbeat results from ecostats this week, such as Wednesday’s BBA Loans for House Purchase, is likely to spur speculation that the Bank of England (BoE) is one step closer to hiking interest rates.
The Pound Sterling to Euro (GBP/EUR) exchange rate is trending at 1.3989.
The Pound Sterling to Turkish Lira (GBP/TRY) exchange rate is trending at 4.2473.