Article by AlgosysFx Forex Trading Solutions
In the previous European trading session, the Euro rose against the British pound on expectations that the European leaders would make significant progress in stemming the debt crisis, boosting demand for the former. With such optimism continuing to impact the markets, the single currency is expected to be getting a lift in today’s European trades.
German Chancellor Angela Merkel and French President Francois Hollande expressed commitment to work together on their approach to Greece. Eurogroup Head Jean-Claude Juncker has backed the Hellenic Republic in its efforts to steer the economy back on track. Today, Merkel is set to meet with Greek Prime Minister Antonis Samaras to discuss related matters. In her prepared statement late yesterday, the German chancellor said that they would continue to encourage Greece to pursue the path of reform that demands a lot from the people. Also, reports surfaced that Spain is already negotiating with the Euro Zone over bailout conditions, although no final decision to seek for financial aid has been made yet by the bloc’s fourth largest economy. Accelerated measures to contain the debt crisis are seen to help the shared currency.
In the UK, the Revised GDP figure is up for release and is expected to still show contraction of Britain’s economy in the second quarter of this year. With a sustained decline in economic activity in the UK, the Sterling is also seen to drop as a result. Taking into consideration all the foregoing factors, a long position for the EURGBP pair is recommended in today’s European trading session.
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