The people of Greece vote "No" in referendum!

Following a very volatile week in Greece, the government left it to a referendum for the public to choose whether the would like to accept the new bail out plan drafted by international creditors.

The result of this; a landslide vote of "No" by the people of Greece rejecting the proposal by their creditors.

It has now been announced that there will be an emergency EU summit held on Tuesday evening, which means that there will be no quick fix solution on Monday.

The result of this shows that Greece are with their leader, which rules out any chances of a re-election at this stage, as unity has been shown with this referendum. 

The Greek Prime Minister has stated that he has no intention of leaving the Euro, however the sheer uncertainty presented by a Euro exit will most likely have strong implications on the Euro.

The effects on the GBPEUR exchange rate will solely rely on the reaction from the ECB, this could well mean the exchange rate could move even higher. This also raises the question of if the ECB will increase their asset purchase programme- if the pace of buying picks up then we may well see the GBPEUR exchange rate move higher.

As it stands there is still a lot of uncertainty surrounding the Euro, so if you do have any requirements please do not hesitate to contact me.

Email- prem.raja@currencies4you.com

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