Currency/Financial Advice: Future of the Euro

[IndieHibby]

Now I know that we hobos know very little about all things financial, other than the vagaries of the peg-selling market and fluctuations in caravan prices, however I would take the advice of a Hibby over those 'we borrow money fra oorsel's, so it's no proper debt, likesay' trumpets anyday.

With that in mind, I have a dilemma. Let's say I had a mate with significant amount of money, in Euro's, in an Irish Bank.

Matey lives in the UK and as such has no particular reason to leave the money in Ireland, other than the (small) chance of moving back there to live.

I have read all about the problems that sovereign debt markets in the EU have, have heard Angela Merkel, no less, state that there are serious problems, several top financial instiutions have expressed grave/serious doubt over the future of the Euro, etc etc.

I know also that the £ vs the Euro is cheap at the moment, and I feel that the £ is likley to gain in value in the long run. I also feel that even though the Euro may surive as North Euro / South Euro, Ireland may enter the South Euro area (due to the state of the economy there) and as such may lose a great deal of value compared to current prices. Worst case scenario, matey wakes up one morning to find that Ireland has gone back to the punt and loses a great of wonga.

Until there is an end to this turmoil for the Euro, I can only see it being static or losing value.

As such, I am tempted to advise matey to exchange the Euro's for Sterling.

Anyone with a view on this? (replies very gratefully received)

[Peevemor]

Now I know that we hobos know very little about all things financial, other than the vagaries of the peg-selling market and fluctuations in caravan prices, however I would take the advice of a Hibby over those 'we borrow money fra oorsel's, so it's no proper debt, likesay' trumpets anyday.

With that in mind, I have a dilemma. Let's say I had a mate with significant amount of money, in Euro's, in an Irish Bank.

Matey lives in the UK and as such has no particular reason to leave the money in Ireland, other than the (small) chance of moving back there to live.

I have read all about the problems that sovereign debt markets in the EU have, have heard Angela Merkel, no less, state that there are serious problems, several top financial instiutions have expressed grave/serious doubt over the future of the Euro, etc etc.

I know also that the £ vs the Euro is cheap at the moment, and I feel that the £ is likley to gain in value in the long run. I also feel that even though the Euro may surive as North Euro / South Euro, Ireland may enter the South Euro area (due to the state of the economy there) and as such may lose a great deal of value compared to current prices. Worst case scenario, matey wakes up one morning to find that Ireland has gone back to the punt and loses a great of wonga.

Until there is an end to this turmoil for the Euro, I can only see it being static or losing value.

As such, I am tempted to advise matey to exchange the Euro's for Sterling.

Anyone with a view on this? (replies very gratefully received)

I'm no expert but I'd go with your gut feeling.

I currently have the opposite 'problem', in that I have some cash banked in the UK and am waiting for the £ to rise again before bringing it across here.

[IndieHibby]

I'm no expert but I'd go with your gut feeling.

I currently have the opposite 'problem', in that I have some cash banked in the UK and am waiting for the £ to rise again before bringing it across here.

Thanks for that. I suppose the Emergency Budget on the 22nd of June could have a (short term) effect on your situation (and matey's). I'd be tempted to hold out as long as you can....

[Peevemor]

Thanks for that. I suppose the Emergency Budget on the 22nd of June could have a (short term) effect on your situation (and matey's). I'd be tempted to hold out as long as you can....

I plan to build a new house in about 5 years time and will be looking to put it toward the cost, so there's time yet. :worried:

At least it stops me spending it on guff. :greengrin

[magpie1892]

Now I know that we hobos know very little about all things financial, other than the vagaries of the peg-selling market and fluctuations in caravan prices, however I would take the advice of a Hibby over those 'we borrow money fra oorsel's, so it's no proper debt, likesay' trumpets anyday.

With that in mind, I have a dilemma. Let's say I had a mate with significant amount of money, in Euro's, in an Irish Bank.

Matey lives in the UK and as such has no particular reason to leave the money in Ireland, other than the (small) chance of moving back there to live.

I have read all about the problems that sovereign debt markets in the EU have, have heard Angela Merkel, no less, state that there are serious problems, several top financial instiutions have expressed grave/serious doubt over the future of the Euro, etc etc.

I know also that the £ vs the Euro is cheap at the moment, and I feel that the £ is likley to gain in value in the long run. I also feel that even though the Euro may surive as North Euro / South Euro, Ireland may enter the South Euro area (due to the state of the economy there) and as such may lose a great deal of value compared to current prices. Worst case scenario, matey wakes up one morning to find that Ireland has gone back to the punt and loses a great of wonga.

Until there is an end to this turmoil for the Euro, I can only see it being static or losing value.

As such, I am tempted to advise matey to exchange the Euro's for Sterling.

Anyone with a view on this? (replies very gratefully received)

Swiss Francs. A solid bet at anytime but will be rock steady as the pound and euro fluctuate.

[KB1]

Now I know that we hobos know very little about all things financial, other than the vagaries of the peg-selling market and fluctuations in caravan prices, however I would take the advice of a Hibby over those 'we borrow money fra oorsel's, so it's no proper debt, likesay' trumpets anyday.

With that in mind, I have a dilemma. Let's say I had a mate with significant amount of money, in Euro's, in an Irish Bank.

Matey lives in the UK and as such has no particular reason to leave the money in Ireland, other than the (small) chance of moving back there to live.

I have read all about the problems that sovereign debt markets in the EU have, have heard Angela Merkel, no less, state that there are serious problems, several top financial instiutions have expressed grave/serious doubt over the future of the Euro, etc etc.

I know also that the £ vs the Euro is cheap at the moment, and I feel that the £ is likley to gain in value in the long run. I also feel that even though the Euro may surive as North Euro / South Euro, Ireland may enter the South Euro area (due to the state of the economy there) and as such may lose a great deal of value compared to current prices. Worst case scenario, matey wakes up one morning to find that Ireland has gone back to the punt and loses a great of wonga.

Until there is an end to this turmoil for the Euro, I can only see it being static or losing value.

As such, I am tempted to advise matey to exchange the Euro's for Sterling.

Anyone with a view on this? (replies very gratefully received)

Overall I would concur with your view, with teh liklihood that the Eurozone will need to provise some kind of gaurantee to the sovereign debt of Spain and possibly Portugal and Itlay, I can only see one direction for the Euro and that is South, I think a rate of GBP/EUR of 1.35 is a realistic prospect in teh next 6 months, not only for the reasons mentioned above but also because it is in the interest of certain Euro countries to have a weaker EUR, i.e. attract tourism currently lost to Egypt and Turkey and also to mak their exports more attractive thereby increasing economic groowth for their own countries by exporting their goods and services....in summary sell EUR and buy GBP, although I also agree CHF is a good bet!!!