PubChampion

It depends on by how much they go down. If it's no more than the markets expect (1%) then the pound will strengthen. If it's more than 1% it will drop. That's because the exchange rate at the moment has already discounted a 1% drop.

It's the first time the UK interest rates are below the Euro zone. As a result, the pound is currently undervalued against the Euro. It's the worst possible time to convert your pounds into Euros. Wait until the UK interest rates climb back above the Euro zone and you'll get much more for your pounds.

You only have to wait a few years.

Jajuliz

How does it work out the other way at the moment? Is it a good time to change euro to pound?

PubChampion

Absolutely, unless you want to be perfect and wait until the pound bottoms out. Obviously it's impossible to tell when exactly that is going happen.

Jon_D

If you want to see a minute by minute change in the currencies have a look here. Damn depressing!
http://www.4xcurrency.com/4xcc/live_rates.shtm

Hettyb

Thanks for the site Jon. Too horrid for words.

PubChampion

The Bank of England cut their benchmark rate by 100 bps as was expected by economist bringing it to 2.00%. The Pound traded higher on the news...

nigel.b

Highly paid specialists who run managed currency funds don't manage to get it right much of the time - just look at their long term performance. I've never got anywhere by trying to play currencies, even in a small way.

The pound is in the dog-house now. The dollar was there for 5 years and is now top-dog.

Gut instinct says the pound will eventually rise against the euro, but until then I (and many others) have to turn pounds into euros to pay the bills.

People talk of pound-euro parity. Personally I don't think that will happen, but perfectly prepared to eat my words in a couple of months!

bejaboz

The European Central Bank also cut their interest rate yesterday, so that may help the pound a little.

Well, I continue to live in hope.

Joao

Don't think so, it looks like it will go down even further before the year is out
Joao

anna58

My friend who works in the city for a swiss bank said today that it's a pity the UK government didn't liase with the europeans and coordinate the rate cut, that would have helped the pound.

PubChampion

The interest rates in both the UK and Euro zone will soon end up dropping to zero or a symbolic 0.25%. In fact, they should be there now.

The European central bank has more self-important bums than the bank of England. For this reason, the Euro interest rates are likely to stay above the UK throughout this recession. This means that the pound will stay undervalued against the Euro until the UK sorts inself out and the economy starts growing again.

Growth will not come easy considering the weight of all the new taxes and regulations Gordon Brown has dumped on the economy and the consumer. However, he still hasn't managed to catch up with the Europeans despite his best efforts. The Euro economy is completely stitched and screwed up. Because of that, the UK is likely to recover quicker than Europe. The UK interest rates will go up above the Euro zone again and the pound will appreciate as a result.

Joao

Taking into consideration that the base lending rate in UK could fall to as low as 0%, my next prediction will be that within 6 months not only could the pound be equal to the euro, but the euro could be stronger than the pound, in other words you will get over one pound for your euro. Unfortunately, as I have said before, this will hit those of us who receive our UK pension in pounds and those who are buying property in the euro zone or continue to have to pay back borrowed money in euros.
On a up beat note - the sun is shining and the cost of living in Portugal has not (as yet) increased drastically.
Joao

Titleist

I have bought some euro's today and only got 1.105, and that was after much shopping around, asda did the best rate. in simple terms £506.56 got me 560 euro's. A big difference to this time last year

bejaboz

Tourist rates are a rip off compared to larger sums for exchange, currently around 1.14 to the pound, but some tourist rates are down to 1.07.

Nikki _ Sam

That's it, bollocks! if something doesn't happen in the next couple of months we're off back home to crappy bloody England, gutted, but how can we change our money to buy a house at this rate (112.somethingorother). If we ever want to change it back it could cost us a fortune. I blame the government, bloody Gordon bloody Brown.....rant, bloody,...rant e.t.c, e.t.c:curse: