So, is the Euro a safe currency to trade in?

Discussion in 'General Business Forum' started by Parrot Hosting, Nov 1, 2011.

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  1. Parrot Hosting

    Parrot Hosting UKBF Enthusiast

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    I am now in a position of taking in as much income in Euro's as I do in sterling. BUT, is the European currency safe for us to do business in or should we we be considering an alternative or stick to sterling? I do point out that in the last 3 months the RofE has improved to what is currently 1.17.

    I should also point out that I am currently trading from Europe while building an international side to my business so I do have a vested interest... :)
     
    Posted: Nov 1, 2011 By: Parrot Hosting Member since: Jan 7, 2011
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  2. MH1

    MH1 UKBF Legend

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    That's what I would call a million euro question, we live instrange times and the simple truth is there are very few definites around at the moment, particularly where the euro is concerned.
     
    Posted: Nov 1, 2011 By: MH1 Member since: Dec 27, 2007
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  3. randdtaxcredits

    randdtaxcredits UKBF Newcomer

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    I would suggest you look at hedging strategies to protect you from a sudden euro drop
    Speak to worldfirst about this
     
    Posted: Nov 2, 2011 By: randdtaxcredits Member since: Mar 29, 2011
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  4. QuickHomeBuyers

    QuickHomeBuyers UKBF Big Shot

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    I would try and stay away from any European currency at the minute depending upon how much of cash reserves you hold at this time.
     
    Posted: Nov 2, 2011 By: QuickHomeBuyers Member since: Jan 9, 2010
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  5. directmarketingadvice

    directmarketingadvice UKBF Legend

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    It's almost certainly a safe currency in the sense of it continuing to have value. After all, with people from 17 countries having their money in Euros, can you really imagine waking up one day and suddenly no-one is willing to trade in Euros?

    In the sense of it holding its value against other currencies, that's another matter. The price it has today (v the dollar or the Swiss Franc etc.) is what the market thinks it's worth.

    And, according to the market, that's the best guess for medium term value.

    Whether you agree with the market - or whether you think the market is wrong - is up to you.

    Though, if you know for sure that you'll be spending this money in a different currency, you could transfer it now as a hedge against uncertainty.

    Steve
     
    Posted: Nov 2, 2011 By: directmarketingadvice Member since: Aug 2, 2005
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