Exchange rate
Nov 21st 2008, 8:12 pm
#1726
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Joined: Nov 2007
Location: Kamloops from London via New York
Posts: 456
Re: Exchange rate
What are people's views on the US CDN dollar exchange rate? Was the 1 : 1 the exception and so the rates are returning to normal, or will they fall again do you think? My assets are in US dollars, and the exchange rate is going in the right direction for me right now, but I wonder about the best time to move them.
Nov 21st 2008, 10:51 pm
#1727
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Joined: Nov 2007
Location: Abbotsford, BC
Posts: 450
Re: Exchange rate
Nobody knows for sure but i cannot see the US $ getting much more stronger than it is against the CD! you ve got to take what your happy with and depends on other factors such as how quickly you need to transfer across ect!
Nov 21st 2008, 11:05 pm
#1728
Joined: Sep 2008
Posts: 12,830
Re: Exchange rate
Wasn't that many years ago it was down to 60c
Nov 21st 2008, 11:45 pm
#1729
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Joined: Aug 2005
Location: Was Brentwood, Essex Now Wasaga Beach, Ontario
Posts: 895
Re: Exchange rate
Only way to disband OPEC is for OPEC to disband themselves, ain't gonna happen. They love the group power they have.
Nov 22nd 2008, 12:22 am
#1730
Joined: Aug 2005
Posts: 14,227
Re: Exchange rate
I bought CAD at end October and got 2.0112. The bank rate on the HiFX website was 2.03 (can't remember whether that was bid or ask). At the time I asked about buying ahead for 1 March 09 and was offered 1.9980, and 1.9879 for 1 June 09. There were no other charges for these transactions, you just get the slightly lower rate. I don't know what the penalty is if you subsequently back out. I didn't buy at the time because I wanted to get better than the $2 on which I based my calculations... hindsight eh?
Hope that helps.
Hope that helps.
Canadian interest rates were lower than UK ones you get a lower rate in the future (i.e. you get a better return having GBP rather than CAD in the bank).
As UK interest rates are now lower than Canadian ones - a forward rate should actually be higher than the current SPOT rate. This is true right now on my terminal anyway (GBPCAD1M/2M/3M points are all just about positive - tho the spreads are large)
Alan
Nov 22nd 2008, 6:02 am
#1731
BE Forum Addict
Joined: Nov 2006
Location: Nusajaya
Posts: 2,327
Re: Exchange rate
There's rules for them, and rules for us.....
Nov 22nd 2008, 6:07 am
#1732
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Joined: Nov 2007
Location: Kamloops from London via New York
Posts: 456
Re: Exchange rate
As OPEC is international who would do the banning?
Nov 22nd 2008, 7:38 pm
#1733
Joined: Sep 2008
Posts: 12,830
Re: Exchange rate
Twiddling my thumbs again in a hotel, looked a bit into the history of the GBP/CAD pair. In 1976 it dipped to 1.61 and by 1980 it hit 2.90. It has gone up an down like a yo yo this past 30 years, so for those holding GBP there is hope yet if you're not in a rush. Trouble is it is a crap shoot for those willing to take the risk.
Some people take more of a risk than others.
http://www.investopedia.com/terms/g/soros.asp
Some people take more of a risk than others.
http://www.investopedia.com/terms/g/soros.asp
Nov 22nd 2008, 7:43 pm
#1734
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Joined: Apr 2005
Location: Saskatoon, Saskatchewan
Posts: 4,104
Re: Exchange rate
If commodities start booming again then the exchange rate is likely to head back towards 1:1; that's what pushed it up there before. Or if people figure out that the US government can't afford all its bailouts then the US dollar might start to fall.
Nov 24th 2008, 3:29 pm
#1735
Forum Regular
Joined: Jun 2008
Location: London
Posts: 51
Re: Exchange rate
The £ has just fallen off the perch!
1.90 to 1.855 in about 45 mins!
Was it the chancellors speech?
1.90 to 1.855 in about 45 mins!
Was it the chancellors speech?
Last edited by scousemartin; Nov 24th 2008 at 3:57 pm.
Nov 25th 2008, 7:49 am
#1738
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Joined: Aug 2005
Location: Was Brentwood, Essex Now Wasaga Beach, Ontario
Posts: 895
Re: Exchange rate
Yes, Labour just flooded the market with new debt....also everyone now saying that Bank of England have to cut another 100bp (1%) very soon. All makes UK a less desirable place to invest.
Nov 25th 2008, 5:18 pm
#1739
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Joined: Nov 2007
Location: Abbotsford, BC
Posts: 450
Re: Exchange rate
The £ is getting stronger just about to break $1.90 again!!!