Can I buy Euros to avoid savings erosion when the Brexit hits the fan next week?

itsthenoise10

I know that some of the loss of the pound has already happened. But, is it possible for a UK citizen to change their cash savings into Euros to avoid the losses that a Pound fall next week will inevitably bring; when May's bill is very likely put out of its misery next week in Parliament?

missile

Anyone can buy euros. If you want to speculate you may wish to open an offshore bank account where you can hold cash and savings in euros.

You might want to consider converting to $.

ColdIron

itsthenoise10 wrote: »

is it possible for a UK citizen to change their cash savings into Euros

Is this a serious question or have you created an account just to make a political point?

londoninvestor

If it's a serious question - [URL="https://forums.moneysavingexpert.com/discussion/5917872covered here[/URL].

System

itsthenoise10 wrote: »

I know that some of the loss of the pound has already happened. But, is it possible for a UK citizen to change their cash savings into Euros to avoid the losses that a Pound fall next week will inevitably bring; when May's bill is very likely put out of its misery next week in Parliament?

Don't you think that the currency markets know this as well as you?

kidmugsy

Be sure to sell the euros before the Italian debt crisis brings down Deutsche Bank and several French ones.

MEM62

itsthenoise10 wrote: »

I know that some of the loss of the pound has already happened. But, is it possible for a UK citizen to change their cash savings into Euros to avoid the losses that a Pound fall next week will inevitably bring; when May's bill is very likely put out of its misery next week in Parliament?

If you genuinely believe that this will offer any level of protection for your money then go ahead. If you do, don't forget to come back in a few months and let us know how much you lost.

Plus

MEM62 wrote: »

If you genuinely believe that this will offer any level of protection for your money then go ahead. If you do, don't forget to come back in a few months and let us know how much you lost.

I don't think this is a silly question. It's not bad to want to hedge your money, particularly if you are exposed to global prices (which we all are to some degree - so much is imported, and commodities we consume like oil are expressly priced in dollars).

However to do that you need some understanding of risk - and somebody asking about 'savings erosion' might not understand that there's a substantial chance of the value of their money going down as well as up. Therefore it's not a dead cert, but could be useful as part of a hedging strategy that's designed to mitigate the risk - although, as others pointed out, at this point the pessimism may already be priced in.

itsthenoise10

Ha ha, of course yes, it's serious. If it's a good enough idea for Rees-Mogg, then it's good enough for a surf like me. The majority of economists agree that crashing out will be a big hit to the pound so it makes sense to think about.

And thanks to all the Brexit cult loons for your replies, make sure you're upstanding, clutching your blue passports and singing 'Rule Britannia' as you go plummeting over the cliff!

dunstonh

If it's a good enough idea for Rees-Mogg, then it's good enough for a surf like me.

Looks like you have fallen for gutter press headlines. He has done no such thing. Try sticking to facts.

greendoor665

You need to gain an understanding of how markets work before attempting to beat the banks, hedge funds, traders and everyone else in the market. These players, with their automated trading algorithms working 24/7, absorb more information in a few minutes than you can learn in a lifetime, and react to news before you can even blink.

You are not trading off some inside information. Everyone in the market knows what you know, so if it's really such a certainty the vote will lose then this will already be priced in. There won't be some sort of cliff edge on the day. In fact it's just as likely the pound will rise as the uncertainty is lifted.

The reason the pound dropped so much after brexit is that the market thought remain would win. In this case I think it's clear to most that the vote will lose.

Be very careful and never think you're smarter than the market based off something you read in the news.

I'm not a brexiteer by the way, quite the opposite.