Euros , now or later

Euros , now or later

Author
Discussion

MX51ROD

Original Poster:

2,731 posts

146 months

Wednesday 28th January 2015
quotequote all
The euro is getting weaker ,todays rate in Tesco is €1.30.4 which means I can get almost 30% more than last year , I will need cash for my July hols .
So buy now and get a good rate , or sit in the fence in the hope it will weaken even more ?

telford_mike

1,219 posts

184 months

Wednesday 28th January 2015
quotequote all
Nobody knows - if anyone did they'd be sunning themselves in Rio rather than reading the Finance forum on PH.

However, here's what I do. If I think the rate is 'good' on a particular day, I buy some Euros or CHF or whatever I'm interested in - maybe half of what I think I'll need in the next few months. If the rate improves this strategy doesn't cost too much, and if the rate worsens I gain a little.

Predictability is just as important to many people as out and out value. Buying a proportion of what you need when you think the rate is good buys you predictability, as you're not going to get a nasty shock when the pound plunges just before you go on holiday.

rdjohn

6,135 posts

194 months

Wednesday 28th January 2015
quotequote all
The very highest prediction from city economists for 2015 was 1.42, more are grouped around a high of 1.35 so as we are now near the top at 1.34.

The problem with July is that it is the wrong side of the UK election which could have a big impact on rates - either way.

I would be inclined to buy now. The decision may look dumb in July, but " a bird in the hand" etc.

Brite spark

2,052 posts

200 months

Thursday 29th January 2015
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Difficult one to call, although in reality your probably only looking at a few quid difference -unless something really drastic happens, hence why it would leave it for now and see how the Greek situation develops rather than worrying about an election effect on sterling for the time being.