Question Of The Week: When should I buy Euros?

Former_MSE_Penelope

Q. When, in the coming weeks, is a good time to buy Euros? Lindsay

Martin's A: This is one of the most common questions I'm asked, and frankly I don't know, nor does anyone. Exchange rates fluctuate as wildly and unpredictably as shares on stock-markets. There's nothing wrong with guessing movements by buying early or holding off, but it's called currency speculation and is a gamble even highly-paid City traders don't always get right.

The pound's weak right now, but that doesn't mean it can't get weaker. Yet if you do buy, don't leave it to the airport, as thus you're a captive customer and rates are terrible. Pre-ordering for airport pick-up is better: use The Travel Money Max to find each country's best rate or even better get a cheap travel card.

Click reply to discuss.

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ajryder

I have a Caxton FX EURO card which can be topped up at any time and the rates are usually a bit better than the Travelex online rates (which are very competitive).

With a card like this it can be used to accrue currency over a number of months (Although I don't think you get interest). With this if you top up once per month for 6 months before your holiday, not only are you saving in advance for your holiday, but you are heging your bets on the FX rate as your rate is fixed for every top up you make.

It's also secure like a bank account so you don't have to have loose currency lying around the house.

When on holiday it is used like a normal credit card or cash card but as it's in Euros there are no transaction fees. Although be careful Caxton is one of the exceptions. Many prepay card such as the Post Office card do charge a fee every time you make a withdrawal abroad.