It doesn't matter that we dont know how the exchange rate will move.Nobody in the world (not even the worlds smartest person) knows what's going to happen to the Sterling Euro exchange rate in the short/medium or long term.
If someone knew for certain, they could potentially become very rich by either buying sterling with euros, or buying euros with sterling.
If you buy Sterling now, sterling could get weaker (and you would lose), or sterling could get stronger (and you would win).
There is probably a 50-50 chance that you would win, and obviously a 50-50 chance that you would lose.
You describe the exchange rate as "good" at the moment.
The exchange rate is neither good nor bad, it is exactly where the market thinks it should be.
The exchange rate could change in your favour between now and the new year, or the opposite could happen, quite simply nobody knows.
Anybody who tells you what is going to happen to the exchange rate in the short/medium or long term does not understand how currency exchange rates are determined. The only answer anyone can give is "It's impossible to know".
If you are planning on spending say £12k sterling on a car in the new year you should set aside £12k sterling now. This is approximately €14k.
You know you are spending the sterling so to do anything other than set aside a sterling amount now would be speculation.
I disagree DerKaiser. It's possible that Sterling will weaken against the Euro before he buys his car in a months time. If £12k = €14k now, then in the new year £12K could be 13.5K if sterling weakens.
Of course the opposite could happen too, and he could lose by not changing now, nobody knows.
I disagree DerKaiser, changing the money now (as opposed to changing it in a months time) is also speculation. By changing the money now, the op is speculating that Sterling will strengthen against the Euro in the next month (which may not happen)
Of course you dont you can change your money into Sterling in any bank, altough rates will be fairly similiar across all institutions.
do you have to take your money out of a bank before you can change the currency with say currency.ie for instance, also how do you go about doing this if it is possible.
Joody1
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