How do you see the pound behaving to the euro , yen and dollar in the coming months ?

Yes am very interested to know the prediction as well.. for Euro more precisely got some to exchange

Michael Young

I think personally the EURO will strengthen its position towards the pound and dollar ,

I agree. The funds in my euro bank account went up 15% in the last year just because of the exchange rate changes against the pound. With more countries joining the EU I think it can only get stronger in the long term.

Of course I don't proclaim to be an expert, but I'm putting at least another grand into my euro account

Interesting move...to put more into your euro-account...do you always get in at the top?

I think the last year was particularly good but the Euro is always gaining against other currencies (as far as my limited knowledge goes.)

I tallied it up and plus the interest on the account it was a bit over the VAT tax rate

It's a barclays Euro account, with only a couple percent interest. I think with a bit of research one could find a Euro account with a higher interest rate as well as the benefits of the Euro's growth.

...and inflation probably ate away your returns...

thankssssss

17% inflation?

According to me Pound and Euro both are good currencies to hold, they both have been strong contestants against the dollar. In the near future I do see the pound to get little weaker than the euro, but well who knows it can be vice versa since if the speculation going round becomes true that the ECB may be cutting interest rates, this will put pressure on the euro. Currencies are very volatile, euro and yen seem to be good bet against the pound. Found this good link for more on currencies.

i agree. the dollar will continue to devalue in comparison with the Euro.

... Predictions are a fools paradise.

I second that...no certainties in this game

GBP is overvalued, but that doesnt mean its going to fall in the short term.

With more countries joining the EU I see the value actually possibley falling with weaker currencies joining that will bring the balance down unless they can pump enough investment into these countries. The pound is overvalued at the same time so I do see it coming down in the future but not neccesarily enough to cause a major crisis. It would be the best idea to look into investment option in the EU if you deem the Euro to keep on getting strong. Then you can have your cake and eat it too.

You are really not getting much euro for your GBP at the moment - from last time I went to get them when I got about 1.4 to the pound wheras now you are looking at around 1.2 to the pound. The euro certainly seems to be getting stronger but who knows that will happen!

Right now the appreciation of the pound to the US dollar in inevitable since the US has been through there boom and the recessionary period is looming ahead. Britian has always had one of the most stable currencies because of the countries background in terms of foriegn relations etc. US prices / inflation will continue to rise once the country does not start buying/producing local. Inflation on goods and services is one main problem the US faces today. This is why it's Balance of Payments surlplus is deminishing. The more a country produces local the more it can make via exports hence strenghtening its BOP situation. You guys should not worry much about inflation of another currency other than yours. It is great to take advantage of the appreciation of the Pound and Euro right now by saving large amounts in the currency. Inflation only hinders person who are spending the currency in which they are saving since real inflation on goods and services are usually higher it takes a toll on your pocket and here is where dis savings comes along ( when you save and the returns are less than the inflation rate and your money looses purchasing power) so guys if you can save in other currencies feel free once you are getting high returns and do not have to spend much of the currency.

Regards
Cambir