Euro-Sterling exchange rate - predictions please

my professional option is that we will not reach parity,

today we have broken the 0.8928 ( 1.12) resistance level, it is expected in the short term for the Pound to make gain against the Euro towards the 0.87719 (1.14) level

having said that there is a large amount of data out this week including the dreaded BoE interest rate announcement and more importantly the Quantitative easing announcement, and the Ecb Rate announcement.



There is huge potential for gbp/eur to swing in either direction depenidng on the results of this announcements. But projections are that we will move away from parity.
 
Hi all,
Just wondering is there a more cost effective way of purchasing sterling 'euro to Sterling' than my local bank? From time to time I purchase equipment from the uk and the exchange rate I get from my bank compared to what is listed on the likes of www.fxcentre.com or www.ex.com is allot lower.
I would be exchanging various amounts from 20K to 80K, every 2-3 months. I have asked for a discounted rate and they inform me that
only on amount greater than 60K and its hardly worth getting when you compare the difference.
Is there any advantage in having an account that you could buy sterling when the euro spikes and hold it in reserve until a purchase is taking place.
I have herd of sterling accounts how do these work??
Is there 3rd parties where I can buy sterling at a more competitive
rate than my bank??
Thanks for any help in advance
 
Hi,

Yes there are comapnys that can offer a better rate of exchange and help manage the exposure to currency fluxuations

One being omnisfx, if you would like to know how this process works check out

www.currencyexchange-advice.com

On the amounts you have stated you would be looking to save around 300/400 sterling on each transfer comapired to using a standard bank, as the margins taken are considerably smaller

I hope this helps

A
 
currency.ie do it, like everything else call your bank and compare and see who can offer the best rates
 
i agree a comparison rate is always the best way to go.

regarding the current movements of the euro over the past week we are currently seeing abit of euro weakness and are testing the 0.89525 resistance and if we break it we could see 0.87719 in the short term.

in conclusion we have been and are likley to trade between the range of 0.9107 - 0.89525 until more information is released about the EU/UK economies and who is going to decrease their QE and raise interest rates first.
 
Nobody can predict exchange rates and people rarely succeed. I got predictions from Blue FX Markets, Ulster Bank and Anglo Irish dealers for the new year and although giving convinving arguments, they were all competely different. It is easy to say it will hit parity or 0.85 but don't forget a stopped clock is also correct twice a day. Try Mystic Meg or the dart throwing monkey.
 
we have broke the resistance at 0.8843 (1.1308) and if it holds this resistance there is scope and expected to move towards 0.8733 (1.1450)
 
UPDATE - the current interbank rate is 0.8684, and with the decision about Greece effecting the euro strength while current speculation is that the rate will move towards 0.8474 over the coming months.

also i write a short daily update on current market movements for the Pound, Euro and USD if that is of interest to anyone get in contact at [email protected]
 
Will approach parity sometime in 2011 - after the Conservatives win the next UK election and are forced to take drastic action to try to save the UK economy. Long term - I'm talking about 5-10 year plus, Euro will eventually settle at a level above parity with sterling.
 
that's a bold statement csirl

i don't think we will get past parity but who knows
 
csirl said:
Will approach parity sometime in 2011 - after the Conservatives win the next UK election and are forced to take drastic action to try to save the UK economy. Long term - I'm talking about 5-10 year plus, Euro will eventually settle at a level above parity with sterling.
Click to expand...

The markets are waiting for the Conservatives to win and bring in fiscal discipline as they always do after Labour bankrupt the UK.

This was clear in the 70's after the IMF had to bail out the UK after another bloated government led socialist and statist catastrophe.

The markets are waiting to know that a hung parliament won't occur before sterling rises against the euro.

As sterling is already down 25-30% against the euro, likely to have a competant government in place from June onwards and as the Euro is clearly overvalued in light of its inherently flawed southern states;

parity between the euro and sterling is very unlikely to occur.

More likely a strengthening of sterling against the euro will occur from mid 2010 onwards.

This is not to say sterling is a good investment, long term it is as flawed as the euro and dollar are.

Nonetheless, comparing one flawed currency against another and one has to rise. Sterling has been a dog V the euro for 2-3 years.

I now sense the worst of the two going forward will be the euro due to its inherent problems. The ECB have held off printing but will be unable to do so as a deflationary depression takes over the Med with huge social unrest. April will be an interesting month when Greece need to reissue a load of their bonds.

Part of the reason to own gold and Asian assets. All Western currencies are long term flawed.

Printy, printy is the only way out of our situation, albeit with huge consequences.
 
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