Good points. So if the US signals it is happy to let the USD slide for political reasons then the CAD can expect to get dragged down with it...??

Yes. That's why the Canadian dollar has been falling relative to the pound in the last few days, and why it's up a little today.

Here's to the $2.25 : £1
If it hits that again I'm booking my dollars in a forward deal straight away

Bloody hell it's going down now :scared: .....Under $2.09. Can anybody explain the volatility at the minute?

I am also wishing the Roe would go the other way! Since arriving in 2004 the rate has gone from around 2.4 to now the 2.0 area. I have money in England I want but am reluctant to bring over becuase the difference. Wish it would change so I can do this (then it can go back as it would then benefit me here!!)

Yes, the pound went down from around $2.30 from April 2005 to it's low of $2 due to the expectation of higher interest rates from the Bank of Canada and also some effect of the increase in Oil Prices, also the expectation of UK interest rates to remain the same or go down. Therefore the Canada interest rate was expected to be higher than the UK one pretty quickly and obviously money investors put their money where the bess rates are. Canadian Trade figures were also consistently good over the last 12 months.

Now, UK interest rates are 1/4% higher than Canada but the difference is that UK rates are expected to rise now so investors are returning to back the pound. Also US interest rates are going up but not quickly enough to protect the economy and the US Dollar if it slides will also bring down the Canadian dollar with it because the economies are intrinsically linked through Trade. So at present the forecast for the pond against the dollar/s are good for emigrants from the UK

I don't profess to be an expert on this subject but these are the facts according to Moneycorp International Investment Bank in this weeks Newsletter.

Hope that explains a little about it.
Gary

[QUOTE=Garfielduk]Yes, the pound went down from around $2.30 from April 2005 to it's low of $2 due to the expectation of higher interest rates from the Bank of Canada and also some effect of the increase in Oil Prices, also the expectation of UK interest rates to remain the same or go down. Therefore the Canada interest rate was expected to be higher than the UK one pretty quickly and obviously money investors put their money where the bess rates are. Canadian Trade figures were also consistently good over the last 12 months.

Now, UK interest rates are 1/4% higher than Canada but the difference is that UK rates are expected to rise now so investors are returning to back the pound. Also US interest rates are going up but not quickly enough to protect the economy and the US Dollar if it slides will also bring down the Canadian dollar with it because the economies are intrinsically linked through Trade. So at present the forecast for the pond against the dollar/s are good for emigrants from the UK

I don't profess to be an expert on this subject but these are the facts according to Moneycorp International Investment Bank in this weeks Newsletter.

Hope that explains a little about it.
Gary[/QUOT
Cheers bud

For the record, one of the BoE panel voted for a rate rise this month, which I think is the first time in over nine months. So the odds of a raise in July or August are looking fairly good right now.

Good News for the exchange rate then, I don't care, I only have a £10,000 mortgage

Is it normal to get paid in sterling ? why not $CAD?

I came in 2004 and got 2.40 as well but by the time I got my Isa's/Pep's and Bond's cashed in the exchange was definitely sliding and as the interest rate is higher in the UK I just left that money there and take the interest out the ATM each month.

But what I find really weird, is the money I brought over after buying house and car was invested by an FA for me. So when the exchange goes down, my investments go up and when the exchange goes up my investments go down all at around the same amount almost matched dollar for dollar. It's swings and roundabouts and I can never figure out what I'm wishing for!!!!

Cathie

Struggling here...let me see if I understand this:

UK interest rates go up = stronger £ = more $ to the £?

We're torn because we've got a USD cheque that must be cashed within 45 days, we're converting it to GBP, sticking it in our savings with a bunch of GBP, and then when we're ready to buy a house converting it all to CAD.

Is it best to just bite the bullet and cash the cheque now, or hold off for a month?

Not really...but i'm keeping my business in the Uk running...hence being paid sterling.

A month may not make a great deal of difference either way. The latest says the dollar will level off in the short term as markets are now expecting more small rises in US interest rates BUT the expectation is certainly not a stronger US Dollar which is what you would be hoping for by delaying cashing the dollar chq. Its upto you really but personally the News is still not in favour of delay.