By Alex Ellis

There are a number of factors that could influence exchange rates today and cause excessive volatility on the currency market.

The first factor is the potential bailout package for Greece, reports early this morning have stated that a bailout package of €22 Billion has been agreed, and this could cause euro strength. In the long term this should take some of the focus away from the PIGS of Europe (Portugal, Ireland, Greece, and Spain) and allow the stronger economies to drive the euro rates upwards.

Secondly the U.S. Dollar may see some strong movement today as GDP data is released at 12:30; this figure is expected to be positive and therefore should cause positive movement for the US dollar. Currently there is a lot of confidence in the dollar and the currency remains strong against both sterling and the euro.

For those looking to trade currency at present, use Currency Line to contact one of our experienced currency brokers, who will be able to assist you and inform you of how these releases have affected the market.