goinghome

I'm new to this site but have been looking at some of the posts...and think a few of you need a bit of info on foreign exchange...
Ok from the start..The Kiwi and Australia dollar are both deregulated currencies so they both move up and down according to market demand ( with no set limits). There are countless factors that can influence the price, and with the Aussie/kiwi dollar not being major currencies, all transactions are worked back against the US dollar. So to have a go at working out what the future market trend will be , you'll have to be a expert on the three economies involved.......and with the limitless unknown future factors that effect these markets, In short you’ll have as much chance of guessing the winner of the 2010 grand national using this weekends racing guide.....

So todays tip is: be careful of anyone giving advice on future market rates.......If they don't work as a ecomomist/fx trader for a major bank and drive a car costing as much as your average house ...take the advice with a grain of salt!!
You're better off using historical information/rates to see if the present rate is a good deal.......but on the other hand, I wouldn't recommend locking into "forward exchange contacts/agreements" when the funds are coming from a future house sale (where you haven't exchanged contacts) or any other unsold asset that hasn't got a fixed/guaranteed value and maturity date....if you do, a delayed sale,non-sale, a decrease in the asset value over the term of the contract/agreement or change in maturity date could exposed you to market risk!!!!....... be careful!!! and always deal with a FSA regulated institutions. .they are heavily regulated and can’t afford to recommend unsuitable products, plus you have recourse if given any mis-information or anything goes wrong…………..

yes i work on the trading floor of a uk bank ....but don't have the car (yet) so I not telling you tomorrows rate....

Stan J

Nick Leeson had one of those cars and look what happened to him (and his Employer) ... no one knows the future my friend.

As for the FSA ... it only operates across certain jurisdictitions ...

As for your advice to "use historical information/rates to see if the present rate is a good deal" you should know that past performance offers no guarantee for the future.

On thing is certain the Aussie dollar began life as a ten-bob-note and in recent history you can get a lot more than two of 'em to the pound!

highwinger

Hi goinghome,

I spoke to you last week (SO I KNOW WHO YOU ARE) your secret is safe.

Thanks for the post, although I appreciate nobody can reasonably predict anything where money is involved I was wonder if there are particularly good ways of converting large amounts of money such as from the sale of a house. Obviously going down to the local Thomas Cook with a briefcase stacked with notes isn't one of them ! Is there anyone out there who gives favourable commision for transactions over a certain amount..say £100'000?

Thanks in advance

Shikse

Surely, some kind of hedge is better than leaving yourself totally exposed to fluctuating exchange rates - especially with the war looming, bloody anthing could happen!!? Perhaps hedge, say 50% of the expected house price value at the time of the expected sale. Gamble the other 50%.

As for forex traders at major banks driving big cars, therefore taking their advice! - LOL, they are only 'as good as their last trade' and could be driving an old banger by the end of the month. Don't tell me they never get it wrong?! Trading is a fickle business, big swinging dick one minute, out on your arse the next.

I'm sure the majority of posters on this site haven't got a clue into 'reading' historical fx charts/technicals. They might as well look at The Sun's page three, nipples left, buy, nipples right, sell. I reckon my pension fund manger would of faired better if he'd done exactly that.

Shikse

SteveBannister

Speaking personally, I think the best thing you can do is open an account with the Commonwealth Bank at this end, and they will transfer your money for you. High street banks and travel agents only offer you a tourist rate. Even money brokers such as Halewoods who promise to beat the banks rates are only talking about the high street banks. I've had quote from the world and his wife, but nobody comes close to the Commonwealth Bank. I met the manager at last years trade show, and I phoned her up last week to check the rates. As they send millions of dollars backwards and forwards every day, what they do is put your money on the back of what they send. It works out at the moment that you get another 8-10 cents to the pound. That, based on your 100,000 pounds would be an extra A$10,000. Do you want to give that to Thomas Cook? Especially at the moment when the exchange rate is going up and up again. It works out easier when you get to Oz as well, because your account is already open there, you just have to go into a local branch and pick up your credit/debit cards and cheque book. One less hassle out of the way.

Steve.

Tez

Hi
on London stock exchange,international exchang rate index,there are two figures for exchange rates.One is the tourist rate(which is always lower)the other is the large transaction figures ie,tens of thousands of pounds,ie today the doller sits at $2.81.Do you mean that the commonwealth bank will add a further 8-10 cents on top of that figure,or on top of the tourist rate.
Cheers Tez

SteveBannister

No, this is the rate that they work on, less their handling fee brings it to about 8-10 cents above any high street bank or broker rate.

Steve.

kevmitch

You might want to look at Xe.com. It's an internet based foreign exchange site. It's easy to set up an account and closely monitor their exchange rates. If you want a little more sophistication (and possible security)you can lock into the futures rates. They operate on the wholesale exchange rates (similar to Commonwealth Bank)