MSE News: Is it worth snapping up euros at €1.41 while the Greek crisis continues?

Former_MSE_Helen

The financial crisis in Greece and ensuing euro worries mean the pound is currently buying €1.41...

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Is it worth snapping up euros at €1.41 while the Greek crisis continues?




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benjus

This again? Really?

How many times do you need to say "nobody knows"?

Why not just continue this thread: https://forums.moneysavingexpert.com/discussion/5194452

NFH

What an ignorant article. 1.4000 is not a psychological barrier. 1.4000 is a GBP/EUR rate (GBP 1 = EUR 1.4000). The market doesn't trade it this way but as EUR/GBP, whereby EUR 1 = GBP 0.7111 (currently). Don't believe the British newspapers, which similarly quote it the wrong way around. Interesting, the BBC News channel in the UK incorrectly quotes it at GBP/EUR whereas BBC World quotes it correctly as EUR/GBP.

You can see live FX rates from the wholesale markets at http://www.truefx.com/

Psychological barriers do have a significant influence in the wholesale markets. For example, if EUR/GBP plunges through 0.7000, then you can expect market players to push it down a lot further, but there is currently good support at 0.7000. However, if GBP/EUR (which the wholesale markets don't use) breaks through 1.4000, nobody notices because this is a EUR/GBP rate of 0.7142, which is not a significant psychological level. If you're going to talk about psychological levels in the market, first try to understand what this means.

Lethnot

The article re how the BBC or others quote currencies against the UKP has from my memory of too many years always has been that way in the UK.....The technical point made about quoting is fair enough but growing up we always wanted to know how much we got for the pound I guess that was our natural physiological hang up! :rotfl:

yorkshiretight

Can I just ask, there seems to some expert knowledge around, just where do I buy euros at the current improved rates? I have one of those cards referred to in the best buys for euros type report but that would apply if I was abroad and spending and I'm not. I just want a stock of euros that I can use when I go to Europe. All the usual sources seem to be quoting rates that reflect the position 2 months or more ago.Any ideas?
Yorkshiretight

NFH

Lethnot wrote: »

The article re how the BBC or others quote currencies against the UKP has from my memory of too many years always has been that way in the UK

It is irrelevant how retail rates are quoted in the UK. When it comes to psychological levels that drive the market, what matters is how wholesale rates are quoted.

NFH

yorkshiretight wrote: »

Can I just ask, there seems to some expert knowledge around, just where do I buy euros at the current improved rates?

You would need a EUR bank account with a debit card and use something like CurrencyFair to trade from GBP to EUR.

Kernow666

where can i get euros at 1.41 just by turning up ?

NFH

EUR/GBP plunged below 0.7000 this morning, having been trying to do so since yesterday afternoon. This is a significant psychological barrier in the wholesale markets, which trade the currency pair as EUR/GBP and not as GBP/EUR. Now that the support at 0.7000 has been broken, it could go a lot lower, not least as the continued uncertainty in Greece is causing further EUR weakness.

The equivalent inverted GBP/EUR rate of 1.4286 is of no interest to the wholesale markets.

Kernow666

where i work i am offering 1.3976 which is a good walk-up rate for any amount
still get the no-it-alls who think because they have seem the 1.42 rate they expect it from me

AlexMac

Kernow666 wrote: »

where can i get euros at 1.41 just by turning up ?

You can't - you have to order online at
http://travelmoney.moneysavingexpert.com/


Which takes all of two minutes- as I've just said on one of the other identical threads on this topic, I did that at 3pm today, and I just used it to collect a wad of Euros - at 1.4171 to the pound; classic eh!

Best rate I've ever got (Call me paranoid, but I prefer to use cash, rather than cards in restaurants and smaller hotels in Italy!). So, I paid almost £100 less for 700 Euros than I did in Sept 2013! In effect, this year's holiday's about 20% cheaper than two years ago... I almost wish I was going to Greece so I could spend my money there; the poor suds deserve a bit of support.

OK, maybe the rate'll go even higher tomorrow, but I don't have time next week to trek an hour up to central London to collect; and I even got the train free wiv me ol' codgers' freedom pass. Retirement's wasted on the old 'ennit?

But you can get almost as good a rate at the airports IF YOU PRE-ORDER USING THIS SITE!