Rates of Exchange

[alreadypacked]

I think it'll approach parity I don't think it'll get there though. I remember the pound did a similar thing against the Euro, and they were reporting it would reach parity, never did. If the US economy shows signs of being "not so bad" then I reckon it'll turn.

How near do you think it will go?

CHF 1 = .97 ?

[BlasterBates]

I think it'll approach parity I don't think it'll get there though. I remember the pound did a similar thing against the Euro, and they were reporting it would reach parity, never did. If the US economy shows signs of being "not so bad" then I reckon it'll turn.

[aussielong]

Can someone explain this to me please.

1.00 GBP = 1.14688 EUR
XE: (GBP/EUR) British Pound to Euro Rate

BUT

1.00 CHF = 0.905260 EUR

1.00 CHF = 0.789146 GBP

I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less

You said:
chf/gbp=0.789

So inverting this:
gbp/chf = 1 / 0.789 = 1.2674

You also said:
chf/eur=0.9

To get gbp/eur:
gbp/chf * chf/eur

1.2674 * 0.9 = 1.14

So, its right isn't it?

[Sysman]

Yikes! Not seen this before:

1.00 GBP = 1.25602 CHF

Nor this:

1.00 CHF = 1.29788 USD

[alreadypacked]

Looks like the CHF is still climbing aganst the Euro.

Hit a high of CHF 1 = .925 on opening, I did not expect that to happen for a few weeks. Could reach parity after all.

XE.com - Free Currency Charts (CHF/EUR)

[Doggy Styles]

Can someone explain this to me please.

1.00 GBP = 1.14688 EUR
XE: (GBP/EUR) British Pound to Euro Rate

BUT

1.00 CHF = 0.905260 EUR

1.00 CHF = 0.789146 GBP

I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less

No, the opposite. You get less pounds than euros for the CHF because pounds are more expensive.

[NotAllThere]

Well done 9/10.
When you grow up you may even practice arbitrage for real.

Minus several million for not noticing that the original question has f.a. to do with arbitrage.

[DimPrawn]

Well done 9/10.
When you grow up you may even practice arbitrage for real.

What do I need to do to get the full 10/10?

[sasguru]

Currencies don't have to balance out.

For example, you could make money by moving it across a range of different currencies and then back to say GBP, and make a profit. However, the spread and commission in each exchange would make it unlikely to be profitable.

It's called arbitrage.

Arbitrage - Wikipedia, the free encyclopedia

Well done 9/10.
When you grow up you may even practice arbitrage for real.

[NotAllThere]

Can someone explain this to me please.

1.00 GBP = 1.14688 EUR
XE: (GBP/EUR) British Pound to Euro Rate

BUT

1.00 CHF = 0.905260 EUR

1.00 CHF = 0.789146 GBP

I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less

The £ is worth more than the Euro. Your brain is obviously not in gear yet. £0.78 or €0.90 gets you 1CHF. You get more CHF for your £ than your €. Therefore £ is worth more than €.

[DimPrawn]

Can someone explain this to me please.

1.00 GBP = 1.14688 EUR
XE: (GBP/EUR) British Pound to Euro Rate

BUT

1.00 CHF = 0.905260 EUR

1.00 CHF = 0.789146 GBP

I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less

Currencies don't have to balance out.

For example, you could make money by moving it across a range of different currencies and then back to say GBP, and make a profit. However, the spread and commission in each exchange would make it unlikely to be profitable.

It's called arbitrage.

Arbitrage - Wikipedia, the free encyclopedia

[alreadypacked]

Can someone explain this to me please.

1.00 GBP = 1.14688 EUR
XE: (GBP/EUR) British Pound to Euro Rate

BUT

1.00 CHF = 0.905260 EUR

1.00 CHF = 0.789146 GBP

I thought that if the £ was worth more than the Euro, you would get more £ for the CHF not less