Sterling Vs Euro

[ChrisQP09]

As we know the **** appears to be falling out of the pound, as a result it's fallen 20% against the Dollar, with performance against Euro looking no better!

I am seriously considering changing up to 20k into Euro, in the short-medium term, would any of you recommend this?

 

[Dyer3200]

Presume you mean £20k GBP into € with a view to doing what ?

 

[ChrisQP09]

Presume you mean £20k GBP into € with a view to doing what ?

Waiting on the pound to go 0.95p/1.00 to the euro and cashing it. At today's rate of 1.11 euro to the pound, such a sterling reduction of 1:1 would gain me 2,200 GBP closer to a maser. Like all investments, it's speculative but I think the pound will go to 0.95/EUR at least.

 

[GeoffCapes]

For 20k it's not worth it. You'll lose too much on the spread.

If you're that comfortable that the market will go how you suspect, you'd be better of spread betting with your 20k.

 

[midlifecrisis]

The pound is near its bottom and like Mark says you lose too much on the spread... The pound will recover and doing it now is too risky, you'd easily be 2k further away from a Maserati...

 

[midlifecrisis]

This is the performance over the last few days, as you can see the drop has levelled out, each candlestick is a day's trading and the Relative Strength Index is below 30%, the 20 day Moving averages appears to be levelling out too...if anything I'd say that it'll climb...

.

 

[ChrisQP09]

Ill sit on this for now as the back on the above. Will make interesting viewing in the week/months ahead.

Would the dollar be a safer bet, assuming Clinton wins!?

 

[allandwf]

I think you have left it too late on both counts.

 

[ChrisQP09]

I think you have left it too late on both counts.

Perhaps on the dollar, it's at tipping point. The pound is uncharted ground but i'll watch it with intrigue.

 

[conaero]

Took €70 out a cash point in Benidorm yesterday, they took £71.55 for the pleasure, work that exchange rate out!

 

[dem maser]

i should have charged more!!! haha

 

[adrianr]

I have just bought £1m in forward contracts at equal £250k tranches for drawdown over the next four months at average rate 1.113709 to Euro in order to hedge the company's trading position. I believe the downside risk of stlg falling lower outweighs the upside gain opportunity. I hope I'm right!

 

[Contigo]

I have just bought £1m in forward contracts at equal £250k tranches for drawdown over the next four months at average rate 1.113709 to Euro in order to hedge the company's trading position. I believe the downside risk of stlg falling lower outweighs the upside gain opportunity. I hope I'm right!

What could possibly go wrong?

 

[D Walker]

I have just bought £1m in forward contracts at equal £250k tranches for drawdown over the next four months at average rate 1.113709 to Euro in order to hedge the company's trading position. I believe the downside risk of stlg falling lower outweighs the upside gain opportunity. I hope I'm right!

Absolutely no idea what that means!
Where does the bloke in white helmet and overalls fit in??

 

[D Walker]

I have just bought £1m in forward contracts at equal £250k tranches for drawdown over the next four months at average rate 1.113709 to Euro in order to hedge the company's trading position. I believe the downside risk of stlg falling lower outweighs the upside gain opportunity. I hope I'm right!

Absolutely no idea what that means!

 

[greeny12]

For all the talk of currency calamity it's worth taking a look at the 10Y trend for sterling against the euro, which puts the present rate into some context...

http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=10Y

Easy to argue that the EUR1.30+ levels are the unsustainable/bubbly peaks and we are currently closer to the 'normal' rate.

 

[GeoffCapes]

For all the talk of currency calamity it's worth taking a look at the 10Y trend for sterling against the euro, which puts the present rate into some context...

http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=10Y

Easy to argue that the EUR1.30+ levels are the unsustainable/bubbly peaks and we are currently closer to the 'normal' rate.

Or the 'normal' you are speaking of, means that there is a recession is on it's way.

 

[greeny12]

True, although by the time sterling had fallen to similar levels last time we'd already been in recession for almost three quarters (out of the five it lasted).

 

[GeoffCapes]

2008 was the last time. Just about the time when Lehman Bros went tits up! And the worlds banks crashed.

Bit like what is about to happen to Deutsche Bank.

 

[allandwf]

It has to fluctuate or no one would make any money out of thin air