prediction on gbp?

monketnuts · 7 June 2011 at 1:50PM

Hello,

strange question, does anybody have any predictions on the strength of the pound vs the euro going up on thursday?

the pound has just been decreasing and by each day it‘s getting worse, i heard that the bank of england announce something this thursday?

Does anyone know what it is and if it could affect the pounds position? Because i am wondering if i should just by the currency now or wait till thurs/fri.

thank you

richardw · 7 June 2011 at 2:21PM

How many euros do you need?

kuczer2 · 7 June 2011 at 2:30PM

The FX market is an absolute lottery at the moment. Even the pros can't get it right!
It seems that anytime a politician or financial figure opens his mouth the markets are affected and that is very difficult to legislate for.

For what it is worth on Thursday the ECB rate announcement is due, where it is speculated at this moment that interest rates will be increased by 0.25%. This would weaken the Euro exchange rate further. Also, the Bank of England are 99% certain to keep rates on hold at the same time (in fact most FX people are not forecasting a rate increase until at least August) which will make it worse.

It looks like the market rate will fall lower in the coming days - toward 1.10 - but don't sue me....... please!!!

monketnuts · 7 June 2011 at 2:34PM

I am looking at 400, already have a fairfx card ordered but need cash in case it doesnt arrive on time, then ill have the card sent next day delivery.

monketnuts · 7 June 2011 at 2:39PM

Lol if i sue, will i get a settlement in time for when i leave? lol

thank you for your advice, it is much appreciated, i think i will just order it to be collected, post office seems the safest and easiest bet.

don't want to risk the pound getting any weaker, just wish i bought it on the weekend instead of leaving it.

thanks again.