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American election exchange rates pounds to euros.


JohnRoss

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I do not think the outcome of the US election will effect the Sterling/Euro rate very much. The Dollar has strengthened recently because market sentiment thinks recovery will come to the US sooner than the Eurozone. Unless you really need to change your Sterling holdings now, I would keep it where it is. You should earn 6% on capital in UK as opposed to 4% in Euros.
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There are several banks currently offering 6% or better - even Tesco currently pays 6.5% on its internet saver account. I have just taken out a 1 year fixed term bond with Anglo Irish bank at 7.02% gross. And yes, it is fully guaranteed by the Irish government and up to £100,000 by the UK government (joint account), since it is an Irish bank which is also regulated by the FSA in the UK.

M

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In my view a capital investment in Sterling is preferable at the moment to one in Euros. Moving your Sterling now into Euros will attract an immediate 20% depreciation on the exchange value of 12 months ago. It may now be some time before that value returns but return it will. In the meantime if you don't need your capital in Euros a comfortable sterling investment should gain 6% annually. That may drop slightly as interest rates fall but the pro-rata rate in Europe will also do the same.

Trust is a subjective word but if you have no 'trust' in financial institutions keeping your cash 'under the bed' is the only option. Not a oood idea.
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The Sterling I was thinking of moving here in Euros is curently held in Isle of Man accounts and there have been some posts suggesting that such accounts are a bit dodgy as the compensation scheme is very inferior to that in the UK..........................JR
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