Keeping savings in €, £ or $?

I'm from the US and have a US bank account. I've been in Ireland for the past two years and have a € bank account here. I'm moving to the UK at the end of the month and am trying to figure out what to do with my € savings.

When I left the US, I left most of my savings there because I assumed I'd be back at some point. But I don't think I'll be moving back to Europe after the UK, so I'm not sure what do with my bank account here.

Any opinions on whether it's better sense to move the euros into dollars or pounds?

Thanks!

I'd keep some in all three if you can access them easily enough.  Hedges you against changes in currency values.

I'd change them to euros, right now the euro is pretty strong against the £

I'd keep some in all three if you can access them easily enough.  Hedges you against changes in currency values.

That sounds like a good plan! Then you can transfer funds around to the best currency rates. 

Vicky's suggestion is probably best,  but you might consider when you expect to need the money. For instance, is the Euro going to be as strong against the dollar in five years as it is now? Maybe, but it's easy to think not. If so, and you'll be needing US dollars in five years, it would make sense to get out of the Euros now. (That the Euro is so strong is a reason to sell them, not to buy them!)

is there another Vicky, or did you get my psychic vibes???

 


Vicky

Haha what were you going to suggest, Vicky? I can't read your mind the way retrobolted can!

I wasn't.  I bow to the knowledge of Geeta on this one.


Vicky

I wasn't.  I bow to the knowledge of Geeta on this one.


Vicky

   I'm not an expert but I am the head of my firm's currency team for some reason!

Vicky's suggestion is probably best,  but you might consider when you expect to need the money. For instance, is the Euro going to be as strong against the dollar in five years as it is now? Maybe, but it's easy to think not. If so, and you'll be needing US dollars in five years, it would make sense to get out of the Euros now. (That the Euro is so strong is a reason to sell them, not to buy them!)

If you think you can call what the euro's going to be doing in five years, then I bow to your knowledge.  Plus I think a heck of a lot of currency traders would love to hear as well.  That's the point of keeping some cash in all three currencies - we don't know so you spread your bets.

This is a very interesting topic. So do most of you keep US bank accounts (at least those of you who still have ties here or plan to come back at some point)? I am thinking to do that just to keep some kind of trace for myself here and also so if I want to buy something online or pay bills here (student loans  ) I have easy access to do so.....

Is that pretty standard?

See, I can read Vicky's mind! She agrees with Geeta, who gave what is likely the right advice.

Geeta, I agree that it is never easy to speculate about currency, but the dollar is currently very low against the Euro and other currencies, and it is just hard to see that the dollar could fall much further, unless the US turns into a third-world country or something. Besides, for better or worse, never bet against the people with the big army.

See, I can read Vicky's mind! She agrees with Geeta, who gave what is likely the right advice.

Geeta, I agree that it is never easy to speculate about currency, but the dollar is currently very low against the Euro and other currencies, and it is just hard to see that the dollar could fall much further, unless the US turns into a third-world country or something. Besides, for better or worse, never bet against the people with the big army.

But the dollar is strengthening against the pound!  Yes, the euro is gaining against nearly everything else but the pound is weakening.  You just can't say what will happen.  And actually, the dollar has been weaker than it is right now...it clearly can happen and has done.

I'd change them to euros, right now the euro is pretty strong against the £

Sorry, just re-read what I wrote, I meant to change them to £

This is a very interesting topic. So do most of you keep US bank accounts (at least those of you who still have ties here or plan to come back at some point)? I am thinking to do that just to keep some kind of trace for myself here and also so if I want to buy something online or pay bills here (student loans  ) I have easy access to do so.....

Is that pretty standard?

I have US bank accounts still. I have loans and debt to be paid off and its just easier to transfer £ to $ and pay that way than to try and pay out of a foreign account. 

Geeta, there is a difference between saying what will happen and saying what it is reasonable to expect to happen, or what is likely to happen. Usually when we don't know what will happen we still make choices based on probabilities. So the question really becomes does it seem likely that the US dollar will stay low long term?