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Sterling exchange rate

  • 03-05-2016 4:20pm
    #1
    tintin2016
    Registered Users Posts: 1 ✭


    Hi, not sure if this is posted in the right section and please move if necessary.

    My dilemma if that is the right word,certainly on my mind is when I should sell sterling to buy euros. I have over a six figure sum. I have noticed the rate fall gradually from 1.44 to now 1.26. I realize the brexit isn't helping matters and the uk economy as a whole is not great.
    According to betting companies it seems 3/1 on that the uk will remain but recent polls suggest a lot closer. I feel if the vote is to remain then sterling may get stronger, however a lot of pundits are saying if the vote is to leave then sterling could end up maybe been par with the euro.
    Not looking for financial advice but opinions would be much appreciated.
    Thank you.


Comments

  • #2
    TopTec
    Registered Users, Registered Users 2 Posts: 1,167 ✭✭✭TopTec


    As ever in these things it's the uncertainty that is driving the exchange rate at the moment. In the shorter term a Brexit will likely drop the value of sterling but nobody is able to predict what happens after that. I was reading a blog recently which claimed that sterling will become the 'goto' currency for foreign investors as it will be protected from the difficulties that are in the euro zone and that will drive sterling upwards against the dollar and the euro. Something which the UK government doesn't want. I think the vote will be as close as the Scottish independence vote. One thing to bear in mind is that those wanting out are less likely to vote than those that want to stay in.

    It wasn't that long ago, 2013, when sterling was trading at 1.15 and personally I can see it going that low before the 23rd. In your place I would probably hang fire for now although that depends on whether you need the funds or not.

    All you an do is read all you can on the subject ...... and then toss a coin cause that is what most of the 'experts' are doing!

    TT


  • #3
    catbear
    Closed Accounts Posts: 5,092 ✭✭✭catbear


    I'm in the opposite camp, will need to buy sterling soon but am happy to hold off til nearer the actual vote. However if it becomes certain that the remain camp will win and sterling starts to strengthen again then I won't wait any longer to buy. I reckon a remain vote will see sterling getting a good spike against the euro.

    However if the odds for the leave camp actual shorten and match the remain vote then I might gamble and wait til after the vote. A brexit would see further drops in sterling.


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