The Australian Dollar to Euro (AUD/EUR) exchange rate remained in a tight range during Monday’s European session as investors awaited news of any developments in the ongoing Greek negotiations; Monday will see Greece submit reform proposals to its creditors.
Market strategist Nour Al-Hammoury commented: ‘If the troika rejects the approach then another emergency meeting will be held with the Eurogroup tomorrow, but time is running out. The drama continues, but we still believe that they will come up with a deal.’
However, some experts speculate Greece will bow to the pressure of the Eurozone after asking for an extension in its bailout programme last week—en event designed to buy time as haggling for a long-term deal continues.
However, it appears that the belief that Greece will remain in the Eurozone is becoming the general consensus. A survey of chief financial officers (CFOs) recorded a massive 75% believed Greece would be able to reach a deal with its creditors.
Chief financial officer Jesper Brandgarrd stated: ‘I do hope that the Greek Government will be sound in its response to the very sensible approach taken by the European finance ministers and it will lead to a clear and transparent road forward.’
Meanwhile, Germany produced a mixed bag of data on Monday by way of IFO Surveys. IFO’s Current Assessment Survey dipped from 111.7 to 111.3 in February, despite forecasts to rise to 112.5.
However, a silver lining came in the form of the IFO Expectations stat which rose from 102.0 to 102.5 in February—a shade lower than the 103.0 prediction. Moreover, IFO Current Assessment reached only 106.8 from 106.7—a far cry from the 107.7 forecast.
Meanwhile, with a lack of influential Australian domestic data due out this week, the Australian Dollar to Euro (AUD/EUR) exchange rate is likely to respond to changes in commodity prices and global developments.
The Australian Dollar to Euro (AUD/EUR) exchange rate could be in for fluctuations on Tuesday when final German and Eurozone Gross Domestic Product (GDP) figures surface. Any fall below initial forecasts could see the EUR/AUD currency pair soften.
Also due for publication on Tuesday will be Australia’s Roy Morgan Weekly Consumer Confidence—an event of mild influence for the ‘Aussie’.
The Australian Dollar to Euro (AUD/EUR) exchange rate resides at 0.6891. The Euro to Australian Dollar (EUR/AUD) exchange rate is trending the region of 1.4518.
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