LadyJessie
(regular)
25/04/2008 00:47
Re: Best currency after leaving europe

Quote:

EUR is holding up due to very firm statements from the ECB about keeping interest rates high. Most observers don't believe that can last for long.


Lemain, I think you got it wrong again. The euro interest rate is actually significantly lower than the British Pound rate and it has always been that way. It is presently higher than the US rate, but that is because the US Fed has had to make recent 'emergency drops' to shore up their ailing money market. The trailing euro rate is still lower than both the GBP and the USD.

What does this mean for the future of these currencies? Well, there is very good saying: 'forecasting is very difficult, especially if it involves the future'. My two cents worth here is that the euro interest will be comparably stable and the GBP and USD will fluctuate in the near future. This means that I think that the British Pound and the US dollar will continue to be weak, and possibly even weaker, compared to the euro. I am sticking to the euro for my money.



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