Genesis

The £ is faring horribly agin the kiwi just now. Its amazing that from a few days ago it was trading for a few days around the $2.85 mark having spent ages at about $2.60..which is where it is now..again!!! Overnight once during that breif period it peaked at $3!!!

I am ruing the fact that I did not get my forward order in at $3 in time for the latter.

The rate is so poor now I apppear to have missed my opportunity to pay off my NZ bills!!! Any idea when the pound is going to get a bit stronger..please reach for your balls (crystal of course).

Wooly_Cow

Bad news I'm afraid. All reports I've read say the pound will continue a weaker path for the next months or even year or so. There will be short term peaks so best to be prepared to jump when you can.

One possible jump might be this Thursday (Friday NZ time) if the BoE don't lower the interest rates by as much as they are forecast. I believe the markets have factored in a 50-75 point cut so if it's less than that the pound could strengthen breifly. If they cut by 100 points then hold onto your hats 'cause the exchange rate could be back to the 12 month lows.

Hope this helps

NakiMan

There are good reasons why that happened. The pound fluctuated a lot in the financial crisis, and there was a lot of selling of the NZ$ by speculators in the so called "Carry Trade" hence the $3 pound (Briefly)

As to when and if it will come back, I wish I knew. I too have income in the UK that I need to transfer.

Personally I think that $2.75 to the £ is about "Right" anything over that, grab it quick

Genesis

Cheers mate, I was aware of the cut tomorrow..wonder what will happen. I have fixed a trade at $3 with HIFX..aren't I the optimist? I have been buying a few hundred £ each day at around $2.80 which is quite good value but will only trade larger amounts in the mid $2.90. For now its worth servicing my NZ debt (due to the finance house cash freeze) at 10% rather than buying at the current crappy rate..it will come good one day..and even if I have to wait a year it will be worth it!!!!

jads

Hi

So the BOE has cut interest rates by 1.5%, how does this effect the exchange rate.

Whats will happen over the next few months?

Cheers jads

Genesis

Alas this apparently makes the pound way weaker..not good for those of us with GBPs to change to kiwis..currently mid $2.60..3 weeks ago it peaked overnight at $3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Its a waiting and watching game now!!! Also get the rate you want fixed and set with your dealer..just in case it spikes when you,re in bed or the pub!!!!!!!!!!!!!!!!!

Wooly_Cow

I expected an immediate drop in the pound....but it didn't happen. No idea what is going on. However that was the 'take out' move from the BoE. Any move from here on in will have limited impact as many Tracker mortgages have a bottom of 3%.

Have to wait and see what the imapct is medium term, but I've given up predicting anything in te markets right now......crazy times.

eddie_nz

pound stronger???

arf

Pounds ****ed at the mo rate cuts have killed it, Hello inflation in the UK

Scouse Dave

I've been waiting for the exchange rate to improve, but alas, we're knackered for the next little while at least. We've got the proceeds from our house sale sitting in the UK.

Mind you (and don't hate me) I did get a great tip on VW the other week, so the exchange rate can go to heck!

Sorry by the way....

eddie_nz

it will kill the pound

If they had to cut it by 1.5 then the econmic data the were looking at must have been terrible, Its also their last throw of the dice (there is a minimum ammount set in mortgages)

On a scale of 1-10 the uk is at 11 now for ****edness

teebrown

Is there a good website so you can watch the exchage rate??

I too have just made contact with a dealer, but he did say he would call if the NZ$ went to about 2.85 - but he didn't, maybe because it was at nightime, do you have to give them 15% and then they secure the best rate??

Sorry a little confused, my first time.

mickey_d

yahoo fianance is pretty accurate

http://uk.finance.yahoo.com/currency...rom=GBP&to=NZD

Genesis

Hi TB, I have a contract with HIFX, pay NOTHING unless the deal is done at the rate I have set..which is $3 to a £. Optimistic but I have time on my side for now. When it gets to the latter the deal is done (24 hr basis as they trade in the UK and NZ over the full 24 hr period) and I have 10 days (I think) to settle. Its binding and no matter if the dollar goes to $3.50 in the next few days I am bound by my pre set trade. Its called a market order. The one where you have to pay up front some 10% or so is called a forward contract where you buy the money at the rate of that day but delay the full payment..so I understand. Hope this helps...PM me if you like.

Genesis

I am BLOODY gob smacked after the 1.5% drop that the rates still at about 2.67!!! Bet it won't last!! I can only wait now as I am not buying any serious amount of £ at that rate. It will get better with time.

teebrown

Thanks for that Genesis, it's a little clearer now. I think we will make a forward contract when the market is a little higher and just wait out for now, we too have a little time on our hands.

Thanks for your help