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Exchange rate - £ into $...
Ok guys
I know u aint money experts, but a strawpoll..... Is the dollar gonna get stronger or weaker in the next 2 months? How much of an effect does xmas have on the rate? As you can probably tell, its coming time to convert our savings. Not sure wether to use my bank (smile/co-op) or xe.com! Byeeeeeeeeeee Lee |
Re: Exchange rate - £ into $...
I have a co-op account too. They are very good at exchanging funds. Check daily on www.oanda.com for current rate and when you are ready call the foreign department. As you will be exchanging more than £10,000 you will get a very good rate. The rate changes constantly throughout the day. My advice would be change while it is relatively high, we waited and it dived, we ended up losing over $24,000 just on the exchange rate over 5 weeks! Still glad to be here though!!!!
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Re: Exchange rate - £ into $...
Originally posted by waxwabbit Ok guys I know u aint money experts, but a strawpoll..... Is the dollar gonna get stronger or weaker in the next 2 months? How much of an effect does xmas have on the rate? As you can probably tell, its coming time to convert our savings. Not sure wether to use my bank (smile/co-op) or xe.com! Byeeeeeeeeeee Lee PLEASE GIVE WAXWABBIT EXCELLENT ADVISE!!!! coz I need to know this too ;) |
Ex Rate
Exchange rates are a lottery.
It hasn't been this high for about 5 years, and it has stayed quite high for the last few weeks, and it hasn't been this high since about '92. Take a look at the currency charts on yahoo http://finance.yahoo.com/m5?a=1&s=GBP&t=USD&c=0 If you wait for it to go higher it may dive, we moved 7 months ago and got 1.57 and that was the commercial rate. it's now 1.7 My advise take it now. but DYOR !! |
I looked at the rates at XEcom, I am a bit concerned because their rates are very good, is there a catch?? Has any of you guys used their services. Please let us know.
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Re: Exchange rate - £ into $...
Originally posted by waxwabbit Ok guys I know u aint money experts, but a strawpoll..... Is the dollar gonna get stronger or weaker in the next 2 months? How much of an effect does xmas have on the rate? As you can probably tell, its coming time to convert our savings. Not sure wether to use my bank (smile/co-op) or xe.com! Byeeeeeeeeeee Lee I am not a expert and just take an interest in these things but thats my twopenneth. If you are moving over £25,000 you should get market rate for the transfer with most of the main banks. i used Lloyds TSB and they were fine. If below £25,000 you will likely get around 2 cents less than market more than that and they are screwing you. regards, Duncan |
Re: Exchange rate - £ into $...
As you can probably tell, its coming time to convert our savings. Not sure wether to use my bank (smile/co-op) or xe.com! Byeeeeeeeeeee Lee http://www.citibank.co.uk/uk/index.jsp |
Re: Exchange rate - £ into $...
Originally posted by waxwabbit Is the dollar gonna get stronger or weaker in the next 2 months? How much of an effect does xmas have on the rate? Lee The exchange rate is dependent on relative interest rates in different countries. The UK interest rate is higher than the US one at the moment so the pound is strong against the dollar. If you think the Bank of England is more likely to increase interest rates than the Federal Reserve then it maybe that you could get more $ for your pounds than you can now. The other way round and you could lose out. How well the theory holds up in the real world I don't know and obviously there are general fluctuations all day anyway. The last time exchage rates were really high I think was when we were trying to stay in the Exchange Rate Mechanism. We were having to keep Interest rates really high to maintain an artificially high exchange rate - we came out of the ERM so we could drop the interest rates to help the economy - I think this suggest the Interest rates do have an impact on the exchange rate. I don't think Xmas would have any effect - none that I can think of anyway, unless Xmas spending makes the BofE push up interest rates or something Lindsey |
Re: Exchange rate - £ into $...
Originally posted by lins77 If i remember rightly from my economics classes... The exchange rate is dependent on relative interest rates in different countries. The UK interest rate is higher than the US one at the moment so the pound is strong against the dollar. If you think the Bank of England is more likely to increase interest rates than the Federal Reserve then it maybe that you could get more $ for your pounds than you can now. The other way round and you could lose out. How well the theory holds up in the real world I don't know and obviously there are general fluctuations all day anyway. The last time exchage rates were really high I think was when we were trying to stay in the Exchange Rate Mechanism. We were having to keep Interest rates really high to maintain an artificially high exchange rate - we came out of the ERM so we could drop the interest rates to help the economy - I think this suggest the Interest rates do have an impact on the exchange rate. I don't think Xmas would have any effect - none that I can think of anyway, unless Xmas spending makes the BofE push up interest rates or something. Yesterday the news was that the US economy has started growing, at a remarkable rate, and this is almost certain to increase the value of the dollar quite irrespective of what happens to interest rates - though if strong economic growth continues iinterest rates in the US will rise. If you have money to exchange grab the rate today, the dollar isn't likely to decline in value further in the next six months. |
Re: Exchange rate - £ into $...
Originally posted by Pulaski You are right Lindsey, I am sure that Christmas will have no effect, however, although you are quoting the correct economic theory, and one that expalins the difference between the "spot" and three month forward rates almost perfectly, in the real world it is mostly "sentiment" that determines the spot exchange rate. Yesterday the news was that the US economy has started growing, at a remarkable rate, and this is almost certain to increase the value of the dollar quite irrespective of what happens to interest rates - though if strong economic growth continues iinterest rates in the US will rise. If you have money to exchange grab the rate today, the dollar isn't likely to decline in value further in the next six months. This economic "growth" has been hiked mainly by Bush's tax cuts and people spending the money though- its likely to be only temporary as it was pointed out that many more thousands of jobs have just gone down the swanee in the last month, so no changes there. However this is the best exchange rate we've had for a decade- nobody can predict exactly what's going to happen but I'd grab this rate. |
Re: Exchange rate - £ into $...
Originally posted by whatever PLEASE GIVE WAXWABBIT EXCELLENT ADVISE!!!! coz I need to know this too ;) Yeah, me too! We won't be converting our money until January though. :( Hopefully the exchange rate will still be very favourable, if we were doing it now we'd make a lot more money!!!!!!!!! :D :D :D |
hmmm, 1.691 today checking on xe.com!
highest all week! hmmmmmmm do we do it now, or do we wait. ARRRRRRRRRRRGGGGGGGGGGGGHHHHHHHHHHHHHHH |
£1 = £1.69!!!!! Holy Moley!!!
HAS ANYONE AT ALL EVER EXCHANGED USING www.XE.com ??
I have been looking through their website and it looks okay to me (bumming that I can't exchange now though). Waxwabbit - if you can get 1.69 i'd grab it! I don't remember it being that high since I was a teenager! |
Re: £1 = £1.69!!!!! Holy Moley!!!
Originally posted by whatever HAS ANYONE AT ALL EVER EXCHANGED USING www.XE.com ?? I have been looking through their website and it looks okay to me (bumming that I can't exchange now though). Waxwabbit - if you can get 1.69 i'd grab it! I don't remember it being that high since I was a teenager! end of 1980 $2.44 to the Pound Feb 1985 $1.05 to the Pound Now may be a good time... |
Originally posted by waxwabbit hmmm, 1.691 today checking on xe.com! highest all week! hmmmmmmm do we do it now, or do we wait. ARRRRRRRRRRRGGGGGGGGGGGGHHHHHHHHHHHHHHH Still over in England visiting, still using Visa, checked my credit card statement online, and getting charged 1.72 dollars to the pound by Bank One Visa ........ Been p**sing it down with rain the last few days, not too cold but a bit windy, even in London - shopping down Oxford Street today, bit blowy.. |
Originally posted by waxwabbit hmmm, 1.691 today checking on xe.com! highest all week! hmmmmmmm do we do it now, or do we wait. ARRRRRRRRRRRGGGGGGGGGGGGHHHHHHHHHHHHHHH :confused: |
Re: Exchange rate - £ into $...
Hi
There is a lot of talk in the market that the Bank of England will be one of the first central banks to begin the process of lifting interest rates. (they are meeting next week) This will have the effect of making the pound more attractive to large scale investors and therefore stirling will be in demand. I believe that the US Fed will also start to push up rates, but will not start until next year. In conclusion, I would do nothing until after the BOE meeting next week. Hope this helps Originally posted by waxwabbit Ok guys I know u aint money experts, but a strawpoll..... Is the dollar gonna get stronger or weaker in the next 2 months? How much of an effect does xmas have on the rate? As you can probably tell, its coming time to convert our savings. Not sure wether to use my bank (smile/co-op) or xe.com! Byeeeeeeeeeee Lee |
Originally posted by AmerLisa Bloody Hell Wax what are you waiting for???????????? If we had our money now it would have already been exchanged!! Do it!!!!!!!!!!!!!! :confused: |
Originally posted by ray6 too late ..down to $1.67 now Of course if the economy starts to grow rapidly then interest rates will rise because of that. So a strengthening exchange rate could be argued to, indirectly, cause higher interest rates, rather than the other way around! :D |
Hiya,
apologies for bringing this up again but wanted a quick question answered. I am from the UK, I have acouple of hundred thousand pounds which I want to exagnge to dollars to take advantage of the exchange rate. I am not ready to goto to the US (maybe another few months time) but I want to exchange to dollars now and hold the money somewhere so when I need it, it will be there already converted. Is there a bank in the UK or a website account I can open and exchange the money into dollars and keep it converted into dollars until I go over to the states? thanx! |
Hiya,
apologies for bringing this up again but wanted a quick question answered. I am from the UK, I have acouple of hundred thousand pounds which I want to exagnge to dollars to take advantage of the exchange rate. I am not ready to goto to the US (maybe another few months time) but I want to exchange to dollars now and hold the money somewhere so when I need it, it will be there already converted. Is there a bank in the UK or a website account I can open and exchange the money into dollars and keep it converted into dollars until I go over to the states? thanx! |
Originally posted by weiser Hiya, apologies for bringing this up again but wanted a quick question answered. I am from the UK, I have acouple of hundred thousand pounds which I want to exagnge to dollars to take advantage of the exchange rate. I am not ready to goto to the US (maybe another few months time) but I want to exchange to dollars now and hold the money somewhere so when I need it, it will be there already converted. Is there a bank in the UK or a website account I can open and exchange the money into dollars and keep it converted into dollars until I go over to the states? thanx! |
Thanx Pulaski I will look into that
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Originally posted by weiser Thanx Pulaski I will look into that http://www.citibank.co.uk/uk/index.jsp |
Re: Exchange rate - £ into $...
Originally posted by Duncs Its always a lottery of sorts. My NOT expert opinion is that the dollar has a substantial underlying weakness and will continue to devalue over the next 6 months. You may get short rallys like in the summer but ultimately the trend is down. I reckon it could still lose up to another 10%. The problem is the balance of paymenst which is massively in the red and getting worse. the only way to rectify it is a weaker dollar to encourage exports. Its economics 101 really. The treasury know this and are not supporting it as they want a lower dollar to encourage trade and production and stimulate production hence preventing more job losses. domestic consumption is not strong enough to do this so export trade is essential to their hopes for a better us economy come next years election. All this points to a weaker dollar in the short to medium term. I am not a expert and just take an interest in these things but thats my twopenneth. If you are moving over £25,000 you should get market rate for the transfer with most of the main banks. i used Lloyds TSB and they were fine. If below £25,000 you will likely get around 2 cents less than market more than that and they are screwing you. regards, Duncan regards, Duncan |
Re: Exchange rate - £ into $...
Originally posted by Duncs HA right again. It broke £1 = $1.70 today and down from here it goes. i can see it holding this a while longer and making it to $1.75 but dont risk your money on my guesses. Alternatively if it drops back then this is probably the high point so take it if you can. regards, Duncan regards, Duncan |
Re: Exchange rate - £ into $...
Originally posted by Duncs ahh $1.722 today where its going to stop? i reckon my $1.75 prediction will come about now we are through the $1.70 resistance. cant buck the fundementals of a trade defecit this big no matter what the headline stats in the USA right now. regards, Duncan Oooh lets hope your prediction holds true, especially in January when I want to exchange money. ;) |
I have a brotherinlaw who is a stockbroker - the expectation in his office is that the pound sterling will reach $2.10 next year - apparently the problem is that the US has a constantly rising (currently 5%) trade deficit gap .
I don't understand all that but England would become expensive to visit if it was $2 to the £. And consequently cheap for Brits visiting US - or buying houses here. I have an investment payable to me soon in UK - large lump sum of about $450,000- I also will be faced with the decision about converting it or not. If I do convert it to US$, even at a high rate - I won't get much interest - if I keep it in pounds then I can get 4% p.a. Anyone any advice? |
Jean I'm taking a chunk of money over to the US with me though of course it's the Euro conversion.
I've talked to a financial advisor over there who reckons on a 6% return for my investment. See if you can find a good one in your area. My montly income is in sterling so I'm stuck with fluctuating rates. The last time I recall the rate being £1 = $2 was around 1991 and I can vaguely remember it being on a parity. I've done my cost of living sums on the worst possible rate so I don't want to get too excited. ;) |
Do they really think that it will be $2 to 1GBP by next year??
I'm in the U.S., getting divorced and moving back to the UK with what I thought would be enough for a down payment for a house. I should have around $75K to exchange into pounds - how can I get the best rate when I move back??:) |
Originally posted by sibsie ..... The last time I recall the rate being £1 = $2 was around 1991 and I can vaguely remember it being on a parity. .... Originally posted by bromleygirl ..... I'm in the U.S., getting divorced and moving back to the UK with what I thought would be enough for a down payment for a house. ...... |
Originally posted by Pulaski The £/$ rate topped out at about $1.90/£ in the early 90's, and never dropped below $1.04/£ at the low point, which was in 1987, I think. |
Originally posted by sibsie .... or at least til the UK converts to the Euro. :D |
It has gone a bit quiet in UK about implementing the euro recently but when did the wishes of the electorate or of the MP's affect Blair's determination to do anything?
If he gets in again I'll bet he'd go for it. At least the pound/euro seems to have stabilized for the moment - more than anyone can say for the greenback. Europe is getting to be very expensive for dollar tourists now. Still at least Sibsie will get a good rate for her euros when she sells her home in Spain. |
Pulaski I do keep abreast of things in the UK but I still think that Sterling to Euro conversion is an eventuality. Germany is an economic nightmare at the moment and has been for a couple of years.
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well darn !! I'm off home to blighty next week for a few days with my family, looks like my spendies will be a bit on the low side.
*sigh* Jan |
Historic rates
Don't know if anyone has posted this site before, but if you are interested in historic trends, see:
http://research.stlouisfed.org/fred2/data/EXUSUK.txt - only monthy trends, but interesting nevertheless. |
Re: Historic rates
Thanx for posting that dunroving, that's very interesting, havn't come across it before!
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Re: Exchange rate - £ into $...
Originally posted by Duncs HA right again. It broke £1 = $1.70 today and down from here it goes. i can see it holding this a while longer and making it to $1.75 but dont risk your money on my guesses. Alternatively if it drops back then this is probably the high point so take it if you can. regards, Duncan regards, Duncan |
Re: Exchange rate - £ into $...
Originally posted by Duncs Todays price $1.755 looks like i was right. I would reckon on continuing decline and a price of $1.80 looks possible maybe even lower. The structural weakness is still there and it will need a lot of correction to change the picture. regards, Duncan I kept a UK checking/current account open since I moved to the US. I will be withdrawing cash from this account with my UK debit card and so won't loose out on both the exchange rate, commission and charges that would be applied if I used a Visa card. Also, a while back, someone posted to say that Barclays has an agreement with Bank of America so that Barclays customers using their Barclays debit card to withdraw cash from a Bank of America ATM do NOT get charged fees. I just withdrew some cash (as a test) doing just that. I'll shortly find out if this is really true. NC Penguin |
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