Sterling v Euro exchange rate predictions

dwsjarcmcd

We are due to complete on an apartment in the South of France later this month. Thankfully most of our money was paid at a much higher rate than today (1.466), but the last decision I now have to make is to decide to lock in our mortgage payments today for a year(I will get roughly 1.24 euros) or to manually transfer the money monthly, where the rate would be 1.28(ish) in the hope that the pound will strengthen.

The trader I am dealing with tells me that there is nothing posative on the horizon to suggest that the pound will strenghten, but although she would say that, wouldn't she! I tend to agree, but I am certainly no expert.

So should I stick (with the current rate) or twist (pay it monthly and wait for the rate to improve)

Cheers David

Inactive

Sadly, nobody can answer that one, if we could, we wouldn't be sitting here, we would be swanning it up in the Bahamas.;)

The £ seems to be dropping by the day to the Euro.:mad:

dwsjarcmcd

Inactive wrote: »

Sadly, nobody can answer that one, if we could, we wouldn't be sitting here, we would be swanning it up in the Bahamas.;)

The £ seems to be dropping by the day to the Euro.:mad:

Hence the reason for the question, and to get more informed views than either mine or a currency dealer with an agenda!

bengal-stripe

dwsjarcmcd wrote: »

more informed views than either mine or a currency dealer with an agenda!

But everyone has an agenda! When the Euro was launched and fell almost immediately against Pound and Dollar, Euro-phobics predicted the Euro was in permanent free-fall and would not survive a year or two.

Your guess is as good as mine..................or anyone else's.
On the other hand........you might want to wait for Mystic Meg!

Inactive

dwsjarcmcd wrote: »

Hence the reason for the question, and to get more informed views than either mine or a currency dealer with an agenda!

Well the simple and honest answer to your original question is, there is no answer, any of us can speculate, any of us can put forward an educated guess, but at the end of the day, any factors could change things overnight.

I don't think that you would thank any of us for getting it wrong.

dwsjarcmcd

Inactive wrote: »

Well the simple and honest answer to your original question is, there is no answer, any of us can speculate, any of us can put forward an educated guess, but at the end of the day, any factors could change things overnight.

I don't think that you would thank any of us for getting it wrong.

Can't argue with that!

jrussell1

I am no expert, but from what I have heard from several reliable sources is that the 1 Pound to 1 Euro exchange rate is possible within the next 6 months.

The reason being (apart from the comments above) is that the larger brokers with European funds will drive the sterling down in order to snap up property and business at rock bottom.

Basically not good if you have buy-to-let or vacant property with the new tax rules (i.e. taxed on your property even with zero rent coming in).

Thanks Gordon.
:rolleyes:

ManAtHome

If we do hit £=e, most of the southern Europe economies will collapse (most of them have a long history of using the devaluation "get out of jail" card).

CLAPTON

jrussell1 wrote: »

I am no expert, but from what I have heard from several reliable sources is that the 1 Pound to 1 Euro exchange rate is possible within the next 6 months.

The reason being (apart from the comments above) is that the larger brokers with European funds will drive the sterling down in order to snap up property and business at rock bottom.

Basically not good if you have buy-to-let or vacant property with the new tax rules (i.e. taxed on your property even with zero rent coming in).

Thanks Gordon.
:rolleyes:

to drive down sterling the brokers have to sell pounds and buy euros.. which drives down sterling.

but if they are then going to buy British Industry cheaply they have to buy sterling and sell euros... which as we know drives up sterling.........


presumably you are mortgaging your house and buying sterling... could be 40% profit is only a few months...easy money (reliable sources etc.)

Poosmate

Hi

I'm not too hot on currency exchanges what makes the value of sterling go up or down but my mom is changing about £5k into Euros now because the Post Officer worker told her we were heading for a £=€ time (they know her as she changes currency there quite regularly).

Hope that helps.

Poo

M_Thomson

Poosmate wrote: »

Hi
my mom is changing about £5k into Euros now because the Post Officer worker told her we were heading for a £=€ time
Poo

Is this post office worker a fortune teller?