The Pound has shown no sign of waning as we head toward the end of 2007. It has been worth twice as much as the dollar for most of the year now and it seems that only a few UK Bank of England interest rate reductions will see it drop by any meaningful amount in the near future. The recent 0.5 percent drop in interest rates across the Atlantic did little to improve the strength of the dollar either.

Back closer to home the Euro has been performing well over the latter part of the year, especially against the US currency. It hasn't been a great late summer for tourists heading to Europe or indeed for potential property investors as a strong Euro means higher prices for beer as well as bricks and mortar. Before it's recent resurgence the Euro had probably been a little undervalued so it didn't really come as much of a surprise to see it make some gains. If you are purchasing a property in Europe you are advised to seek out the best rate you can get and if you look at the currency traders long term rates where you make an agreement to buy your chose currency in 3,6,9 months or more, you can get a much better deal.

What are the city traders forecasting for the next year? Well most seem to think that the Pound is as much as 15% overvalued against the dollar (so should be around $1.70) but they have been saying this for months now and nothing much has changed. We should probably get used to these rates for a while but if you are planning a trip to the States next year, now is a very good time to put an order in for some dollars. Sites such as www.travelmoneyservices.co.uk will give you $2.10 if you make an order for November 2008, a time when the dollar will surely have made some kind of comeback. Visit www.xe.com to see the very latest currency market rates for pound, euro and dollar.