Re: $1.876
 

Thats close to what I consider a "parity" kind of rate - for comparing salaries UK to US and such I always work on about 1.5 to 1.6 on the pound.

But who knows, these predictions are all well and good even by these guru's, but they don't always work that way.

Re: $1.876
 

At the bottom of the following link are charts for currency parity between different currencies on 8/14/2008 based on 2007 ppp.

http://fx.sauder.ubc.ca/PPP.html

From the charts it appears that parity is about USD $1.60 per UK pound and about USD $1.20 per euro.

Re: $1.876
 

At least it's levelling out now at about 1.86.

Could do with it going up again a bit though!

Re: $1.876
 

Did you negotiate that if it drops below a certain level you will need extra money given that you were still being paid from the UK? Not sure when you moved over, but if it was when the rate was closer to 2, you probably should have covered yourself. When I first moved over the rate was about 1.4, but I was being paid in the US on a US scale salary not the UK one I had before.

Re: $1.876
 

I'm not planning to relocate back to the U.S. now until Spring next year but I'm thinking now would be a good time to move my funds before the rate dips any lower than $1.87 to the 1GBP. Would everyone agree with this thinking and if so what method would you use to move i.e. .XE?:)

Re: $1.876
 

The current rate takes into account how the whole market thinks about the value of the two currencies. Some may think the US$ is currently overvalued, others that it is undervalued compared to the pound. No one here has a crystal ball and knows more than the market (which sets the price) does about future exchange rate swings.

There are many threads here about exchanging money. XE is good, as is ukforex.

For peace of mind, you might want to exchange a bit of money every month. I would just keep the money invested until you were about to move. Say you could earn 4% on that money by the spring - the rate could go to ~1.79US$ per GBP and you wouldn't have lost anything compared to if you exchanged now (assuming you'd stick the US dollars bought under the mattress and not earn interest on it).

Re: $1.876
 

I was very lucky. The current one runs out in October but when it was hovering $2 to the pound end of last month as I had a little bit of spare cash in my UK bank account I decided to get quotes for a new contract. I got a one year contract $1.955, with no transfer fees. So allowing for the 2 contracts overlapping I have my pension covered until October 2009.

The day after I agreed the contract was when the rate started going down.

Re: $1.876
 

I was once told by an economist that there is another way to work out the rough parity of currencies and that is on the price of a Big Mac.

Apparently McDonalds pricing is done so that you need to work the same amount of time to earn the money to buy a Big Mac wherever it is sold.

I make no claim as to the accuracy of that statement. :o

Re: $1.876
 

The "Big Mac" index is a guide The Economist magazine has been using for a long while:

http://www.economist.com/finance/dis...ry_id=11793125

The latest table gives a purchasing power parity for the £ = $1.56.

Re: $1.876
 

I think you are confusing me with someone else. I haven't moved yet....just want to get as much in my "emmigration fund" as poss....
Talk about timing.... :D

Re: $1.876
 

AUD v/s USD....AUD is suffering

Re: $1.876
 

It was 1.47 (or 1.43?) when Blokey moved to the US. OK salary with that exchange rate....1.95-2.10....salary doesnt look that hot on paper :(

Re: $1.876
 

I would be very pleased if the AUD plunges against the USD and the GBP over the next three months - my Crimbo holidays are going to be over there! What do you think the chances of that are?