GBP - Euro before or after next PM?

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Marozi
Marozi Posts: 2 Newbie
in Flights, currency & car hire
I am going away in August and the pound is currently very low, I'm wondering if should I buy Euros now or after the next Prime Minister is revealed on July 23rd?

I know its a bit of a crystal ball situation and the pound will probably stay weak until Brexit but I have read that if Boris wins (Brexiteer) the pound "may" fall and if Hunt wins (Remainer) the pound "may" rise.

So my dilemma is to wait or buy now?
Or will any difference be so negligible its just not worth worrying about?

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  • Voyager2002
    Voyager2002 Posts: 15,287 Forumite
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    1. The markets hate uncertainty, so knowing who will be the PM should see a higher pound than just guessing.
    2.I think the choice is between a no-dealer (Johnson) or someone who will seek to make a deal (Hunt). Do you really think that Hunt has any chance of winning? If so, you could bet on it, since that would probably bring the pound up a bit.
    3. You say "the pound will stay weak until Brexit", and should add "after that, for many years to come" if there is no deal.
    4. I must say, I changed all my spare money into dollars last November, and think that there is more scope for the pound to go down than up: unless we get a reasonable deal.
  • Neil49
    Neil49 Posts: 3,081 Forumite
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    Either way you should be getting your euro from an atm in which ever euroland country you are visiting rather than buying them in the UK.

    Just get a decent couple of cards such as Starling and Halifax Clarity if you want a decent exchange rate.

    Have a nice holiday.
  • mad_rich
    mad_rich Posts: 868 Forumite
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    Marozi wrote: »
    I know its a bit of a crystal ball situation

    Yep!

    Don't try and second guess the market. If you're happy with the rate now, change now and don't look back. Otherwise wait until August and don't look back. Either way, don't regret your decision.

    Make sure you get the best rate, whichever way you do it. If you're going for a prepaid card, you could hedge your bets by doing 50% now and 50% later. This will (partially) even out the inevitable volatility.

    But, I repeat, you can't outthink the market. Even the people who this sort of thing for a living get it wrong.
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