How will the Greek election affect exchange rates?

AUDGBP Bounces After Setting Lows for the Year

GBPAUD Transferring AUD Buying AUD Selling AUD Exchange Rate Forecast June 2012 Australian Dollar Forecast

The Greek Election is due to take place on 17th June and up until recently it was widely expected that Syriza would get into power. However, over the last 24 hours a number of polls have put them second to a party who will agree to the austerity measures sought out by the EU Bailout Fund which could provide us with some confidence. Indeed, many surveys have said that 80% of Greeks want to remain in the Euro and I personally think that even if Syriza do come into power there will inevitably be some sort of compromise in order for them to agree the austerity measures. With so much money having been pumped into the Greek economy it is unlikely that the ECB will not get its way. For an interesting article about the subject click on this link 

The G20 summit taking place this week has seen global leaders agree to pump cash into the financial system in an attempt to reduce the volatility and stop people attempting a run on the banks. With the UK having agreed to increase lending we have seen the markets react in positive light and the Federal Reserve are also hinting that they could bring in QE which could boost the Australian Dollar exchange rate. With the GBPAUD trading at approx 1.5550 this afternoon on Interbank level the antipodean currency seems to be remaining stable prior to the events on Sunday.

If you need to save money when transferring currency please do not hesitate to contact me Tom Holian quoting ‘Australian Dollar Forecast’ in the subject title [email protected]