Sunday 13 September 2015

The Three Possible Effects Of The Greek Elections To Britain's Pound Sterling

With Greek elections coming up on September 20th after Former Prime Minister Alexis Tsipras' decision to resign from his position, investors fear for the upcoming instability and uncertainty posed by the new government. The new leaders may decide the weakness or strength of the Euro and it could mean deterred arrangements between Greece and its creditors.



The UK's inflation data shows oil as a factor to the lower inflation in the country. A low inflation level means a less chance of an interest rate rise, making the Pound Sterling very weak.

Over the last week, the Pound Sterling had weakened against the Euro bouncing between £1.35/ €1.

Analysts see that the Euro may weaken against the sterling in the next few months with the upcoming September 20th election. The threat of a possible 'Grexit' still looms despite the revolutionary Syriza government signing off of their position to eliminate austerities following Tsipras' decision to let Greece undergo another round of austerities.

Investors looking to buy Euros may want to do so at this point. However, the high uncertainty of Greece's decision and the threat of a Grexit still in the air, it is ill-advisable to move anything within the Euro to contain possible losses coming from the scenario.