Election result affect on Pound to Euro exchange rate

Snowball44_2

I am going on holiday to Spain at the end of May. I am interested to know if the value of the pound may improve against the Euro depending on the outcome of the UK election.

Mr_Lahey

Snowball44 wrote: »

I am going on holiday to Spain at the end of May. I am interested to know if the value of the pound may improve against the Euro depending on the outcome of the UK election.

It will have an effect, however, whether it is a positive one or a negative one is not clear. I suspect if we end up with a hung parliament then i expect the value of the pound will drop.
To predict the alternative outcomes really would be nothing more than guesses.

Voyager2002

Snowball44 wrote: »

I am going on holiday to Spain at the end of May. I am interested to know if the value of the pound may improve against the Euro depending on the outcome of the UK election.

Yes, it may. And then again, maybe not.

Let's do a deal: you tell me the election result, and then I'll let you know what it will do to the exchange rate.

Teahfc

Why not buy half now and half just before you go !

If you are going to Spain I assume if you went for 2 weeks with a family of 4 you would need maybe €1250 ?
If the rate goes up or down it will not be life changing differences ?

I have a Spanish bank account as I own a property in Spain and to be honest I bought yesterday as I thought the rate of €1.126 to the pound tourist rate locally was a damn good deal and best it has been for some time !

wwwd

Teahfc wrote: »

Why not buy half now and half just before you go !

If you are going to Spain I assume if you went for 2 weeks with a family of 4 you would need maybe €1250 ?
If the rate goes up or down it will not be life changing differences ?

I have a Spanish bank account as I own a property in Spain and to be honest I bought yesterday as I thought the rate of €1.126 to the pound tourist rate locally was a damn good deal and best it has been for some time !

That's what I would recommend. That way it isn't a real problem if the rate goes up or down.

I think it depends on whether there is a hung parliament or not. They seem to be suggesting that if it is hung then sterling will weaken against the euro so in that case it would be better to buy now. If the Tories win outright I think it will rise so it would be better to wait. I think the latter is probably on balance the better option as the situation in Greece could also make the euro weaker against stg. I know that earlier this week I gave instructions for a transfer from our euro account to our sterling account because I felt that stg would only get stronger in the next few months. If it was me I would wait until after the election to buy.

kaspar

some have said the pound has already weakened in anticipation of a hung parliament and therefore it may not fall much if this actually occurs.

hearts

kaspar wrote: »

some have said the pound has already weakened in anticipation of a hung parliament and therefore it may not fall much if this actually occurs.

I agree. It is down now in the expectaion.

cundall

hearts wrote: »

I agree. It is down now in the expectaion.

But then again... the euro is weaker due to the problems in Greece and the mount of people out of work in Spain.

Its getting better at the mo for the pound - just