British Pound against the Euro

Richards1

So, my wife and I are holidaying in Spain in October. Should we buy our euro's now, or wait it out in case the exchange rate improves.
Regards

ianmr65

Richards1 wrote: »

So, my wife and I are holidaying in Spain in October. Should we buy our euro's now, or wait it out in case the exchange rate improves.
Regards

Anyone who knew the answer to that with absolute certainty would making a fortune on the forex spreads market.

As the people working or investing on the forex spreads market don't know the answer with absolute certainty, they tend to hedge multiple currency positions, using forward options, and contracts: and arbitrage the margins.

For everyone else (like me) it's educated guesswork. My view is that the pound is still overvalued, and when the MPC cut's rates, it will go down further against the euro. But if something major goes off in euroland, that could all change.

Personally i'd consider Florida, or California. They all speak spanish anyway, and you'll get a hell of a lot more holiday for your money. :beer:

robindix

purch wrote: »

The Euro is/was an experiment in Financial Engineering that was always doomed to failure.

Good old opinions dressed as facts...

Why is it doomed to failure? And what suggests this is happening?

Just interested...

purch

Good old opinions dressed as facts...

NO

It's a good old opinion dressed as an opinion.

Clearly reading and understanding are beyond some people

P.S. Thats an opinion too !!!!

xiox

Is there a cheap way to put some of my pounds into euros and save them at a reasonable rate? I understand the rate is lower in euro land, but it would be nice to save a fraction of my savings to protect against the fall of the pound.

I had a quick look on the internet, but I assume in reality I'd get a negligible interest rate and have to pay some large percentage to convert between the currencies.

Richards1

ianmr65

Our plane flights have already been paid for, and anyway Cadaques in October is more preferable to the States in my opinion. Have to bite the bullet, leave as is and perhaps purchase small amounts of euro's on a weekly basis. Hedge our euro bets so to speak.

Regards,
Phil

:rotfl:

ianmr65

Richards1 wrote: »

ianmr65

Our plane flights have already been paid for, and anyway Cadaques in October is more preferable to the States in my opinion. Have to bite the bullet, leave as is and perhaps purchase small amounts of euro's on a weekly basis. Hedge our euro bets so to speak.

Regards,
Phil

:rotfl:

I like it.. And i think your idea is sensible. I think if you were going in a month or so , buying all the euros now would be a good bet. But in the current climate six months is a very long time, and trying to call the market that far out would be pure guess work.

[Deleted User]

I believe that the £ v euro will reach parity. The euro is going from strength to strength and the ECB will not do anything to counteract the growth in the value of the euro.

A couple of weeks ago I got 1.26 to the £ and last year 1.45. I do know for a fact that I won`t be booking any more holidays in europe this year. I have one good holiday booked for a months time and luckily that includes all the evening meals too and was booked 9 months ago with a price guarantee. I do think that people from the uk in europe are definitely going to notice it in their pockets

Browntrout_2

You may have heard of the BRIC economies - Brazil, Russia, India and China.

But have you heard of the PIGS!

Portugal
Ireland
Greece
Spain

The Euro could rise to parity with Sterling and likewise it could go to 50p, who knows!

PS - I also think it's an experiment doomed to failure, the USA has a federal government (that works) and freedom of movement across all states with a common language and flag.

ianmr65

Browntrout wrote: »

You may have heard of the BRIC economies - Brazil, Russia, India and China.

But have you heard of the PIGS!

Portugal
Ireland
Greece
Spain
.

:rotfl: :rotfl: :rotfl:

No doubt in the ECB, the bourse, and the bundestag, they are known as "Spanferkals", german for Roast Pig. Thier economies are certainly being treated that way!!