Buying Euros

Anarchy Rules!

Right then, I'm travelling around Europe for a month in the summer. I was curious whether anyone knows if there's any chance of pound sterling becoming stronger against the euro. Otherwise I'll buy my Euros now (about £900 worth).

corcorigan

Why not just use a cash point as you go along like everyone else in the world?

SlickShughes

Because if the Pound deteriorates against the Euro between then and now, he'd be paying more for each Euro compared to buying them now. Also, it's a better idea to purchase them in advance in bulk and from a reputable financial institution, ATMs charge you high conversion rates and fees.

Bad-Beat

Just adding on using cards...
Using a debit card abroad should really only be for emergency situations.
You get hella charged for taking money from a cash point, some banks do offer accounts where you get free worldwide atm withdrawls but they are fee paying accounts. Also, banks tend to stop cards if they see you are using them abroad. So if it does come to using it while in Europe tell your bank you are doing so.

Tav

The pounds only become weaker against the Euro over the last while, so it would probably be better to buy now.

Kate of Lokys

Why not hedge your bets by buying half now, and half a week or two before you leave? If you notice any significant drops in your purchasing power before then, you can go ahead and buy the rest early before the market falls too much. On the other hand, if the pound rises a bit against the Euro in the next few months, you'll end up with a bit more to spend than you would have had otherwise.

Predicting changes in currency is notoriously difficult; there's a reason why there's a global market for just that, volatile as it is. The odds of any major changes between the Euro and the pound within the next three or four months are pretty low, but it's going to fluctuate one way or the other almost assuredly. So, play it safe and split the difference.

corcorigan

Everyone (well me, and every regular traveller I've ever met) uses bank cards abroad. Unless you really want to carry about thousands of euros in cash (yay, that's never ended badly), it's worth putting up with losing a few pounds every transaction.

Do tell your bank before hand though.

(Well I use ATMs anyway. It's just more convenient all round. Used them for months in India without a hitch, secret is to tell the bank in writing a few weeks before hand rather than ignoring it and hoping it works and putting up with useless telephone help lines.)

SlickShughes

Oh, I did the same thing when I went overseas. But at the volume AR is talking about, it would cost him quite a bit in the stupidly high conversion rates you have to deal with. Besides, traveller's cheques, not cash, would likely be the way to go here, so large amount in your pocket isn't a big deal.

Applebee

"I was curious whether anyone knows if there's any chance of pound sterling becoming stronger against the euro."

Bear in mind, any trade you enter is entered into by someone else on the other side. You have to make sure you have better information and better analysis than them if you want to make a profit from their loss.

Digg

Marks and Spencer sometimes offer a better exchange rate than banks.

You might not be able to change £900 in one visit though.

Edit: I would agree with some of the comments here that it's not a good idea to carry so much cash when you are traveling. A few extra bank charges could be worth the security that comes with carrying less cash. You should talk to your bank and find out what the charges are.