We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

interest change affect on euro exchange rate

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

Comments

  • Voyager2002
    Voyager2002 Posts: 16,235 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    Ian_W Posts: 3,778 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    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? :D
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.