When do I exchange 26k worth of Euros into Pounds?
Discussion
As per the title, I have been gifted £26,000 of Euros as an early inheritance due to French Business legalities.
I don't own a house and could do with utilizing some of the money to pay of a relatively small amount of debt and also invest a couple of thousand in a very small part time business venture I run.
Problem is the exchange rate.
Do people believe I should sit on them and wait it out in the thought the Euro cannot go any lower or best to transfer now and limit any further losses from the euro worsening and make the most of the cash now, increasing its value through interest and investment in the UK?
This really isn't my area of expertise but I am trying to be as sensible as possible.
Thanks
I don't own a house and could do with utilizing some of the money to pay of a relatively small amount of debt and also invest a couple of thousand in a very small part time business venture I run.
Problem is the exchange rate.
Do people believe I should sit on them and wait it out in the thought the Euro cannot go any lower or best to transfer now and limit any further losses from the euro worsening and make the most of the cash now, increasing its value through interest and investment in the UK?
This really isn't my area of expertise but I am trying to be as sensible as possible.
Thanks
Sooner rather than later, especially if you look at this trend.
http://www.xe.com/currencycharts/?from=GBP&to=...
http://www.xe.com/currencycharts/?from=GBP&to=...
Pints said:
Sooner rather than later, especially if you look at this trend.
http://www.xe.com/currencycharts/?from=GBP&to=...
Or hang on to them for 10 years hoping they'll turn back around...http://www.xe.com/currencycharts/?from=GBP&to=...
http://www.xe.com/currencycharts/?from=GBP&to=...
ymmv...
One of my clients is in a similar situation. He was thinking about hedging but the advice from the Investment bankers was that the cost of the hedge was likely to outweigh any further falls in the Euro and told us not to bother.
The repayment is due within the next 2 months. I think the 3 month euro forecast is higher than the current value (i.e. its likely to go up rather than down) so we've decided to risk it.
The repayment is due within the next 2 months. I think the 3 month euro forecast is higher than the current value (i.e. its likely to go up rather than down) so we've decided to risk it.
Someone just offered you the following bet: for every 1% the EUR goes up vs. the GBP you make £260 and vice-versa.
Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
walm said:
Someone just offered you the following bet: for every 1% the EUR goes up vs. the GBP you make £260 and vice-versa.
Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
Perfect logic. Well done walm. Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
I friend used Transfer Wise to move GBP to CAD to pay the deposit on his apartment in Canada with no problems:
https://transferwise.com/en
No idea how their rates compare but he said it was cheaper than using HSBC (no surprise there really though).
https://transferwise.com/en
No idea how their rates compare but he said it was cheaper than using HSBC (no surprise there really though).
Sterling is likely to strengthen against the euro over coming months, the ECB has Quantative easing pencilled in until Sep 2016. That's without any Greek hiccups.
Our FX boys are pencilling in 1.47 or so towards the start of next year.
On that basis, and assuming no need for Euros, I'd cut and run sooner rather than later.
Our FX boys are pencilling in 1.47 or so towards the start of next year.
On that basis, and assuming no need for Euros, I'd cut and run sooner rather than later.
KTF said:
I friend used Transfer Wise to move GBP to CAD to pay the deposit on his apartment in Canada with no problems:
https://transferwise.com/en
No idea how their rates compare but he said it was cheaper than using HSBC (no surprise there really though).
I use this for my monthly salary transfers!https://transferwise.com/en
No idea how their rates compare but he said it was cheaper than using HSBC (no surprise there really though).
Cut, run, now! IMHO
toohangry said:
walm said:
Someone just offered you the following bet: for every 1% the EUR goes up vs. the GBP you make £260 and vice-versa.
Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
Perfect logic. Well done walm. Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
Pretty much my way of looking at investments.
If you had £26,000 in your account would you buy Euros with it?
If not, then get rid!
Phooey said:
Out of interest does anyone know what the highest and lowest the euro has ever been against the pound? Also, i was trying to see roughly what we paid last June when I bought some euros... anyone know what it was roughly this time last year?
Cheers
https://www.google.co.uk/finance?q=GBPEURCheers
at top of graph click 5y to see last June, all to see historic high/low
Haven't cashed in yet. Still considering what to do but have definitely taken all advice above on board so thanks for that.
Only point of note is that I felt all the noise about last thursday was getting abit silly and so actively decided not to cash in then meaning I saved £250+. Thats probably plenty of gambling for me though as I have done a little dabbling with shares in past and the little gains I grossed were not enough for the stress it caused me!
Only point of note is that I felt all the noise about last thursday was getting abit silly and so actively decided not to cash in then meaning I saved £250+. Thats probably plenty of gambling for me though as I have done a little dabbling with shares in past and the little gains I grossed were not enough for the stress it caused me!
walm said:
Someone just offered you the following bet: for every 1% the EUR goes up vs. the GBP you make £260 and vice-versa.
Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
I'm not sure I follow. Just because you are long a stock or currency or anything doesn't mean you should be rid instantly because you're not a market expert. He's on here asking advice on what people's views are on EUR/GBP so he can make an 'informed' decision on his position. By getting rid now that doesn't mean he's made the 'right' decision, EUR might then go sky high and he'll have lost out. That's a bet in itself. Would you take it?
Were you thinking of making a similar bet before you were given the money?
If the answer is "no" to the above then you should just convert the money today.
Just because you happen to be in a position to make an enormous currency bet - doesn't mean that you should.
If you had some expenses in EUR then perhaps you should keep some amount in that currency but if all of your life is GBP denominated then don't go making currency bets that you know nothing about and for no reason.
I however do agree, for the reasons given I think EUR/GBP goes lower, but you may want to consider 'averaging' out, by selling slowly over the course of the next few months.
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