interest change affect on euro exchange rate

matth36

with the interest rate change is now a good time to buy euros:j

Voyager2002

Other things being equal (which of course they are not!), a fall in the interest rate means that lending money to UK institutions becomes less effective, so short-term money goes elsewhere, so the value of the pound falls. However, if the markets judge that reducing the interest rate is going to be good for the economy, medium-term investors will regard the UK as being more attractive and so will invest here, and so the value of the pound will rise.

Of course, other factors such as the price of oil and gas, the US presidential election, and the relative phases of the moon, are likely to have equally large effects on the sterling-euro exchange rate.

Personally, I just ask my hamster. If she runs energetically round her wheel when I mention a major currency, I know that a good time to buy has arrived. And my method is every bit as effective as any of the expensive and sophisticated econometric modelling techniques that are used in the city.

Of course, if you don't want to trust my hamster you can always invest in doubloons.

Ian_W

Voyager2002 wrote: »

Personally, I just ask my hamster. If she runs energetically round her wheel when I mention a major currency, I know that a good time to buy has arrived. And my method is every bit as effective as any of the expensive and sophisticated econometric modelling techniques that are used in the city.

Of course, if you don't want to trust my hamster you can always invest in doubloons.

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Your 'amster any thoughts on the stock markets?