# Currency Advice - forward contracts



## curiouseuro (9 Sep 2009)

I am moving to the UK to study, will be back and forth, but mainly basing myself in the Uk from next year on a more permanent basis.

I have a lump sum to transfer, I am bringing one third with me.  I am about to lock two thirds away for next 9 months in fixed term  euro deposit account.  

My question is should I convert it all to sterling now while the rates are ok?
I am concerned about them dropping back down to 67p by the middle of next year.  Are forward contracts a good idea?

I had considered converting it all right now, but was advised that the best interest rates being offered on deposit accounts right now were in euro.

Any thoughts would be appreciated.


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## MovinUp (21 Sep 2009)

I just got the end of a report today on Bloomberg that the British Pound or Sterling was losing ground due to the state of the British economy and could reach parity by the end of the year. 

Has anybody advice to offer as I thinking of opening a Sterling account.


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## mercman (21 Sep 2009)

curiouseuro, you may be able to obtain a forward contract with an option on it. Some of the banks offer this type of contract. Movinup, it is near impossible to pre judge long term currency movements in this climate. The way it is now and is heading suits the UK Government as it is good for their exports. Longer term it really should start heading back but nobody really has a clue.


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## ccraig (21 Sep 2009)

you can do forwards on currency.ie, didnt see anything on options though


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## Boros (4 Nov 2009)

you can book forwards (forward contracts) with independent currency specialists, you can also use a number of other strategies such as limit orders (best case scenario) or stop orders (worst case scenario)  

EUR/GBP forecasts from RBS


+1 month 0.9199
+3 months 0.9380
+6 months 0.9625
+9 months 0.9597
+12 months 0.9515


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