which way is the euro exchange rate going

Smokeyone

Can anyone here make a guess which way the euro exchange rate is going over the next three months or so ! Should I purchase a chunk soon for use in six months time ! What are the opions....

purch

Yes

The BOE will more than likely contiinue cutting rates

The ECB will more than likely leave their's well alone (or even raise :eek: )

Over the short term the Euro can and will only strengthen

free4440273

Long euro here: both against sterling and the dollar: fed will just keep on slashing rates down to one per cent; BofE will start to start quite aggressively also; ECB has Trichet and he's not budging (at the moment)

Rafter

Sterling is currently at its weakest point ever versus the euro, but that doesn't mean it couldn't drop further because of what purch says.

However, parts of the European Economy are struggling too and the current exchange rate makes the Euro very uncompetitive and reduces inflation in the Eurozone, increasing the posibility that they may cut rates too.

If you are planning a major purchase, house for example, then you should look at some sort of forward option maybe to protect you if the rate deteriorates significantly.

However, if you are simply worried about the cost of your holiday spending money, I'd hold fire, I don't think it will get any worse.

R.

Smokeyone

It's not a major expense like a euro house purchase but it is a large chunk because I am paying the bills in euro's when I get there for the whole family.
Maybe just buy some every month until the holiday.........

geebeehhh

I have £5000.00 (Sterling) which I need to change to Euro - should I change it now or could Sterling pick up a bit?

geebeehhh

thanks Jackdoor.