Sterling v Euro exchange rate predictions

alared

How the £ performs is all down to how many more cuts the BoE makes.
With only one more hinted at and the European bank unlikely to cut at all,I would guess the downside from here to be limited and no worse than £1 to €1-15.
The money markets tend to price in well in advance of any rate cut.
To answer your question,if it was me,I would lock in for a year @ €1-24.
A. You know exactly what you have to pay each month and can budget.
B. The rise in the £ will not be dramatic and could easily take 2/3 years to get back to €-45

TuftyMatt

I would not expect to see a rate cut this month and looking at the rise in the pound this past week or so nor do the experts.

I think a headline rate of 1.3 to the pound could be on considering we are at just under 1.28 currently.

sondos

Hi,
Following on from the a recent post regarding a gentleman's move to France and sterling to euro exchange rates, I have the somewhat opposite problem.
I will have the need to bring back a very large sum of euros (all legit I assure you) to the UK & exchange for sterling.
It is simply the return of my capital investment in a company, not taxable profits.
Which or who is the best company to use in anyone's experience please?

mike_the_bike_2

whats the predictions now?..I've bought my euros today at 1.13 to the pound as i've got a holiday booked for January and as the cost would normally be in my Feb 2009 credit card statement I see parity by then!

..Under the matress have gone the euros...Cash is king!

cifpower

what with the government borrowing endless amount of money and the economic conditions worsening the pound will only weaken further against the euro

henrypage

Poosmate wrote: »

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

If your mum uses the Post Office to exchange currencies she is not doing herself the best deal! For example, the Post Office sells Euros at about 95p (maybe slightly less for large amounts) but they have a spread of about 15p i.e. sell Euros at 95p buy Euros at 80p. Independent exchanges, such as DAPA in Brighton sell Euros at about 88p and buy at about 83p, i.e. a spread of about 5p. The post office are raking it in with a spread of 15p, aren't they?

mackay78

Interested to know if there are any further thoughts on this. With interest rates predicted to drop as low as 0% I guess the reality is it could drop further - but also think that we might be at a base now and possibly things could improve over time... or is it going to just stick at 1=1 for some time (perhaps in preparation for a switch to the Euro... gosh, I wish - bloomin' Little Englanders are going to stop that from ever happening). Sorry, off topic a bit there... so, any suggestions where things might go next?

Inactive

mackay78 wrote: »

so, any suggestions where things might go next?

See answer number 2, nothings changed.;)

bengal-stripe

dwsjarcmcd wrote: »

Thankfully most of our money was paid at a much higher rate than today (1.466)

"Those were the days, my friend,
we thought they'd never end........"

Argie_2

ManAtHome wrote: »

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).

Well, we went close to parity and they didn't fall apart. Most of the world has done though!