Euro (€) Currency Thread

sabretoothtigger

'First ever spread bet on the future of the euro, from WorldSpreads

December 10, 2010

From 1 January 2011, investors can take a position on how many days they believe the single euro currency will survive in its current guise. WorldSpreads, the financial spread betting company, is quoting a price of 710-720 days for how long more the euro will last, before at least one currency confirms its intention to withdraw from the euro.

Optimists can bet higher than 720 if they think the euro will last longer than 720 days. If they are wrong and it collapses in 300 days from January 1, the loss is 420 times the stake. Pessimists can bet lower than 710 if they think the euro will break-up within 710 days. If it dies in 300 days, the win is 410 times the stake. To ensure the sellers are not exposed to open-ended losses, the market will last for 1000 days and all trades still open at that date will be settled at 1,000.

Says WorldSpreads CEO Conor Foley; "Trapped between ideology and reality, the euro will be 2011's hottest financial debate. Every day we trade futures and currencies, but never before have I seen a trade on the future of a currency. A sharper benchmark for euro sentiment than our very own Stress Test one will not find".

WorldSpreads Press Office '

JasonLVC

After two days on the slide, the pound has steadied itself this morning, trading back above 1.18 as Spain’s credit rating comes under the spotlight.

• Rather unusually, the pound failed to receive a kick higher yesterday after UK inflation came in above expectation at 3.3%.
• The Bank of England has stuck resolutely to its line that inflation will fall back over the medium term but its forecasts are increasingly losing credibility as prices continue to rise.
• Above forecast inflation is normally a sign that interest rates need to be moved higher and has lifted sterling in the past but it has become such a well trodden path in recent months that the markets all but glossed over the data.
• In trading this morning the eurozone is back in focus, though unfortunately not for the right reasons. The credit rating agency Moody’s has put a watch on Spain, citing concerns about mounting debt.
• There are also mounting discords between German Chancellor Angela Merkel and ECB President Trichet on the eve of an EU summit. Germany has stiffened its opposition to expanding government-financed aid for debt-plagued euro nations with Merkel due to lay out her position in a speech later today.
• Amid these tensions we expect the euro to remain under pressure going forward, although price movements are becoming increasingly erratic amid thin trading conditions.

Usual source, CaxtonFX

JasonLVC

Trading started back yesterday and as usual was a cautious start as traders were short of detail and with a general lack of data being published on growth, sales, etc.

STERLING/EURO:
Boosted by encouraging UK data, sterling rose over a cent against the euro yesterday, moving decisively away from its recent two month low.

• Data revealed that UK manufacturing activity grew last month at its fastest pace in 16 years. The Purchasing Managers' Index (PMI) rose to 58.3 in December, its highest level since September 1994, and well above the consensus forecast of 57.0.
• The figures gave the pound an additional boost having already opened the morning on top following buying from Asian sovereign accounts and on talk of a UK clearer's dividend payment which required it to buy pounds to pay investors.
• In trading this morning sterling is continuing to extend its run higher, with the price now back above 1.1750 and at a one-week high.
• The focus today for sterling will come from the construction PMI figures at 09:30 (services data, the final of the three monthly PMI numbers is due tomorrow). It’s expected to indicate that activity in the sector continues to moderate, which could quickly cap the pound’s upward movement.

globalloon

i would some currency transfer advice

my father lives in france and wants to gift me about £14k so I can pay off my debts. His money is in Euros

how do I get the money into my UK bank account with the minimum of losses through transfer fees, exchange rates etc etc?

It occurred to me to visit him and bring the Euros home in cash and then negotiate a rate with my bank rather than using a bank transfer... but that doesn't seem very secure!

JasonLVC

globalloon wrote: »

i would some currency transfer advice

my father lives in france and wants to gift me about £14k so I can pay off my debts. His money is in Euros

how do I get the money into my UK bank account with the minimum of losses through transfer fees, exchange rates etc etc?

It occurred to me to visit him and bring the Euros home in cash and then negotiate a rate with my bank rather than using a bank transfer... but that doesn't seem very secure!

Suggest your Father transfer the money via a currency broker such as Caxton FX (www.caxtonfx.com) or (www.hifx.co.uk). I use both for transferring monies between currencies and countries. Usually find Caxton have a tiny bit better exchange rate but neither have fees and HiFx are better when the values being exchanged are much higher.

He'll need to set up an account with them (doesn't require a fee but will require the usual forms like setting up any account with a bank) - it is very easy to do, all online.

These folks then allow you to transfer money from one account in Euros to another account into £ Sterling and they do not charge a handling fee and usually offer an exchange rate which is better than high street banks.

If you bring back 14,000 euros of cash you must declare it in the red channel when you enter the UK (or take the risk of not getting caught through the green channel). Over 10,000 euros has to be declared because it exceeds the international money laundering thresholds and so better to declare it and explain why/where it came from than risk being caught and treated as a smuggler/mule.

Another option is to open a Euro account in the UK and Father can do a bank to bank transfer with no 'transfer fees' but you'll need to scope which banks offer this service and again, their rates of exchange may be much less than a currency specialist such as the ones I've mentioned.

Best of luck with that and hope you sort your debts out.

Voyager2002

globalloon wrote: »

i would some currency transfer advice

my father lives in france and wants to gift me about £14k so I can pay off my debts. His money is in Euros

how do I get the money into my UK bank account with the minimum of losses through transfer fees, exchange rates etc etc?

It occurred to me to visit him and bring the Euros home in cash and then negotiate a rate with my bank rather than using a bank transfer... but that doesn't seem very secure!

You will get a better rate for a bank transfer rather than for cash.

I suggest that you visit your bank and ask if they could offer special terms for that amount of money. Otherwise, investigate the on-line and other currency exchange services (the one I use is xe.com, but there are plenty of others) and again see if you can negotiate a special deal for the amount involved.

harryhound

Anyone tried these people yet:

http://www.currencyfair.com/

It is the same sort of concept as "betfair"

Of course with the Crown Currency fiasco fresh in the mind a lot of people are being cautious.

SallySunshine

Are they registered or regulated in any way?

If they go bust, can you get your money back?
Can't see any info on their site.



Yes, I'm paranoid as I am a 'Crown Currency' victim

JasonLVC

STERLING/EURO:
The pound’s trend higher accelerated yesterday as positive UK data combined with undermining comments from the ECB President.
The UK currency opened on the front foot as data revealed the services sector returned to growth last month, rebounding after a weather-effected December. Activity expanded at its fastest pace in eight months in January, adding to the positive signs from both the manufacturing and construction industries.
In later trade the euro came under selling pressure as Trichet dampened expectations for a rate hike in the eurozone. Trichet said inflation risks were “broadly balanced,” dimming the prospects of a rate rise and disappointing market expectations for more hawkish comments.
Sterling is continuing on its run higher this morning with the price reaching 1.1850, a fortnightly high.
Attention in the UK now switches to next week's BoE rate announcement (Feb 10th). This could hold more attention than normal with the market pricing in a small chance of an interest rate hike at this meeting (albeit a very small chance!).

sailho20

just notice that tesco don't charge to use there visa to pay for there travel cash. rate is slightly lower but would assume you would be protected

any coments

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