Thursday saw the GBP/USD cross open in the low $1.57’s as the markets anticipated news from Greece
If a deal is completed it will mean the bailout package that was provisionally agreed in February will save Greece from defaulting and go along way to helping the Eurozone. This will see investors return to the single currency and we could see GBP/USD rates push back towards the $1.60 barrier.
News from the Bank of England (BoE) that interest rates will remain at 0.5% and MPC members not making any changes to their quantitative easing programme did little to impact (as forecast) sterling’s performance.
"Sterling's movements in the near term will be more the result of euro/dollar ... The euro has been rallying as there is a more optimistic feeling about Greece and Draghi was more neutral with no suggestion of an imminent rate cut," said Audrey Childe-Freeman, EMEA head of currency strategy at JP Morgan Private Bank.
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