Euro J

Is the value of the euro expected to increase?

I know the euro is worth something like £0.88 as of today but at one point it was worth almost £1.00. Does anyone know what the exchange rate is expected to do because I have some euros that I'd like to change and I don't know when would be the best time to do it if the rates are going to fall?

Public Comments

1. Nobody can really know (except the people in charge have the intention of solving the problems by devaluing the currency). The Euro became a bit weaker in the begin of January - bad economic news from the Euro zone and the expected ECB rate cut are probably responsible for it. Fundamentially, the Pound is likely to be weak for years. But, unless you are holding a significant amount in Euro, the daily fluctuations should not matter much. 1000 Euros today will give you 900 pounds. If the rate changes to 0.92, it´s going to be 20 pounds more (IF the bank treats you well). Nice to have, but not life changing. With 100 Euros it only gives you an extra 2 pounds. As the Euro is already worth so much more than the last years, perhaps you are better off having Pounds in a bank account gaining interest, or paying a debt off, than holding Euros interest free. On the other hand, if you don´t need the money now, and plan on going to the Euro zone any time soon, you could save on exchange fees. To the common man (or woman) those fees usually matter more than FX market volatility.