Quote:
Originally Posted by RFremont
Not sure why seemingly lots of people talk about changing dollars into euros instead of pounds sterling; you get a higher interest and it's historically a stable currency.
Teomaxxx, what is your 2-3 year prediction of how the dollar will perform vs the euro?
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Good point - Pounds Sterling is performing better than the Euro and no reason to think this will change in the short term (short term being around 5 years). Predictions so far, estimate both the Pound and Euro will increase around 4-5% before the year end due to relatively healthy economic results.
Probably over a longer term - tho who knows? - the Euro will gain more strength. There are several factors, some major, which could contribute to this - among them, industries and natural resource producers seeking a more stable currency base for their product - particularly oil. Overall the Euro may probably supercede GBP or be a more secure currency base.
PS For what it's worth - predict over the next 2-3 years the dollar will drop at least 10% against the Euro, forgetting any natural increases the Euro may have. Depending on other actions by the US govt, external creditors and producers possibly moving away from the dollar as a currency base, - this can be far more dramatic and volatile. The US economic problem is going to be around for a decade ahead at least - there is no easy instant remedy.