Euro/Pound rate

[josa]

I am about to need to transfer a reasonably large sum from Pounds to Euros to make some future payments to my builder.

I think the rate has gone against me of late, and also the word is that the Bank of England will reduce interest rates this week - given that no-one can see in the future, what would the best advice be - wait a couple of weeks or change it up now?

[Eslier]

If anyone could answer that question for sure, he or she would be very rich by now and wouldn't have time for thsi forum !

Seriously though, there is good advice around but you have to remember that it's all a bit of a gamble. Take a look at:

http://www.moneycorp.com/

click on tools and then click on "daily brief".

This will give you an insight into what is going on this week. On the home page you can click on a link to have that "daily brief" e-mailed to you every morning. If you read it often enough you start to get a better idea of all the factors involved.

A lot, this week, will depend on whether the Bank of England reduce UK interest rates. It was thought that this was quite probable but you will see from today's "market brief" they are now saying it may not happen which could lead to the pound gaining a little against the euro at the end of the week.

[Baz]

I agree with Elsier comments, but it  may be worth hedging your bets by buying forward half the amount of Euros required now, so  as at least any downward movement will be partially protected. This is what I would do in the current volatile money markets, especially when you consider that only a month ago the euro was trading against the pound at over 1.50€.

Baz