Pound to euro exchange rate: Sterling SURGES against the EUR as fears over Grexit rise

Sterling has started the week strong against the euro, with a current exchange rate of 1.179.

Up until last week, the GBP was hovering around the 1.155 mark.

The surge in the exchange rate comes following a statement made by the International Monetary Fund last week.

The statement called on members of the Eurozone to do more to help Greece’s debt crisis.

Greece’s economy has been unstable for quite some time, but the latest talks brought in speculations of Grexit.

According to some financial experts, some Eurozone countries are reluctant to provide Greece with more debt relief.

Germany’s finance minister Wolfgang Schäuble even added that Greece’s debt should only be slashed if it leaves the Eurozone.

Meanwhile the country’s Prime Minister, Alexis Tsipras, has been resisting any implementation of additional austerity measures for a third bailout.

Financial analysts believe that if the current situation with Greece remains tense, it could leave room for the pound to continue its upward trend.

Especially if the latest UK inflation figures, which will be released tomorrow, show a positive trend.

Tomorrow, however, will also see the release of Germany’s GDP figures for 2016, which could support a recovery for the euro.

Despite a positive outlook for sterling, the currency still remains volatile while Brexit negotiations continue.

Just last week the GBP took a dip against the US dollar as Parliament voted on the amendments to the Article 50 bill.

The pound to dollar exchange rate reached highs of 1.249 on 6 February, but later dropped to lows of 1.235.

MPs voted on proposed amendments to the Article 50 bill, which will take the UK out of the EU.

The Government comfortably saw off four opposition attempts to change the bill.