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Pound v Euro
missile
Posts: 11,806 Forumite
I have tried to hedge my exposure to currency fluctuations by having some cash in pounds and some in euros. I have always thought there are winners and losers, but the way the european economy is heading it seems soon there will be only be losers?
The falling Euro is causing me increasing stress. I have significant savings in euros and I am a bit alarmed and have no idea what I should do?
The falling Euro is causing me increasing stress. I have significant savings in euros and I am a bit alarmed and have no idea what I should do?
"A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:
Ride hard or stay home :iloveyou:
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Comments
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Convert it to pounds? Just a thought...0
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I would never have thought to do that <LOL>"A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
If you hold significant sums in a currency other than that of the country that you live and work in, you are gambling with your savings, not hedging them.
Holding different currencies to hedge against fluctuations is only advisable in circumstances where you cannot avoid exchange risk because you have a need to conduct regular forex transactions. EG, you live/work between countries, you run a business that engages in cross-border trade, etc.0 -
Risk of gambling I'm afraid."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »Convert it to pounds? Just a thought...
Unless you have a need for Euros, do this ^^^ and do it now
Playing Forex games with your assets is not for ordinary folk0 -
Perhaps I should have explained, euros are the proceeds from property sale.
When I first bought, it was 1.68 euros to the £. Pound has weakened steadily since then and until recently that trend seemed likely to continue. It seemed sensible to leave some of the money in euroland rather than converting it all to £."A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
what's reasonably certain is that the value of the euro against the pound will fluctuate for the foreseeable future0
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what's reasonably certain is that the value of the euro against the pound will fluctuate for the foreseeable future
Very true. IMHO the £ is artificially strong, our underlying economy is not good:( and one would need crystal balls to predict whether the pound will weaken against the euro."A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
Perhaps I should have explained, euros are the proceeds from property sale.
When I first bought, it was 1.68 euros to the £. Pound has weakened steadily since then and until recently that trend seemed likely to continue.
Recently? You evidently haven't been watching very closely. The pound bottomed out at €1.02 in January 2009. Since then it has bumped around mostly in a range between €1.12 and €1.24, there is no way you could describe it as weakening steadily.
Buying in at €1.68 still puts you well ahead, you could have made greater gains if you'd sold at the right time instead of holding, but if you continue to hold it could turn to a loss.Very true. IMHO the £ is artificially strong, our underlying economy is not good:( and one would need crystal balls to predict whether the pound will weaken against the euro.
The pound vs the Euro remains undervalued in Purchasing Power Parity terms, as it has been since late 2008.0 -
If you should hold the money in the currency you are likely to spend it in for the most part. If you're going to buy a new house on the continent then perhaps it's worth hanging on to them. If you are likely to be using the money to buy in the UK then convert it to pounds.
Unless you're talking about a serious wedge of money, likely shifts in exchange rates aren't going to make a huge difference to you, generally.0
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