dunroving

That's when I had to exchange about $50k to put a deposit on my current house. I got about £25k, but today would get £33k.

However, the interest rate I got at that time was for an offset lifetime tracker at BOE + .59% so I can't complain. About 6 months or a year later, such deals didn't exist and mortgage financing regulations tightened up. My monthly interest has been less than £100 for the past 5 years.

It's easy to dwell on the negatives of our financial decisions but often there's a consequent positive somewhere.

celticgrid

I have some money left in Sterling in a UK account. If the rate ever gets favourable I'll convert it to $ and move it across.

However, here's the prediction that was asked for...

Having recently received paperwork from the bank about my US status, if they decide to close the account to avoid FATCA then that will happen at the same time as the pound reaches new depths against the dollar. Will they close the account? If so, when? No idea, but if it happens tomorrow, then on Friday the pound will start to climb again.

Yes, I'm a pessimist!

lansbury

One of the ForX brokers that gets mentioned on BE from time to time predicted, the other day, that during 2015 the £ will trade at between $1.40 - $1.65 to the £. Keeping his options open then.

Pulaski

As the GBP-USD rate has been in that range for probably 75% of the last 25-30 years, it wasn't a tough prediction to make.

lansbury

very astute of you to notice that.

Michael

Sometimes he does show unbelievable insight.

BerkshireBugsy

Apologies if this has been stated before but it's worth keeping an eye out for announcement ok UK interest rate changes

A few months ago when it was suggest by the Bank of England monetary committee that base rates may go up the pound went up against the USD to about 1.70 (interbank rate)

Since those increases came to nowt the strength of the GPB against the USD has gone back down

I do not claim to be a financial expert but this change was significant !

Michael

The British economy is still not growing fast enough to deviate too far from the Euro. The Euro area has deteriorated over the past year so the expected interest rate hike by the BOE is probably delayed. Tightening of monetary policy (interest rate hikes, etc.) normally indicates a healthy economy and the currency normally becomes stronger but the tightening also slows the economy.

Even though it is expected by most economists that the US will raise interest rates next summer, if it happens, the rise will likely be very small and not frequent like most recoveries. Raising the discount rate from 0% to 0.25% means little especially if the next rise is 6 months later and is also another 0.25% rise. If a central bank is too aggressive, it throws the economy back into a recession.

In my opinion, the best scenario would be for the US economy to consistently grow at a 4%+ rate, average 400,000 jobs created per month, and the Fed tightens. The USD will likely rise but Europe will likely be pulled up by the US recovery and then a reversal in currency strengths will likely take place.

brit_usa2014

My bank at the moment is giving 1.45 to the £..

I need the money within the next couple of days/weeks- not sure if it's feasible to transfer it now or wait a couple of days?

Just a few weeks back it was 1.51 to the £. Compared to that this is wayy less!

zzrmark

I held out for a fortnight hoping for a bit of a bounce back and finally changed some today, luckily only had to change a small amount but necessity overruled nerve!!! I'm no expert but I predict that the rate will drop further tomorrow, next week is anyone's guess!!!

username.exe

I will shortly have to transfer the proceeds of my house sale from GBP to USD and am wondering whether I should do so in one fell swoop, or hedge my bets and do it in 'chunks' through the course of six to nine months.
Did anyone here use a similar strategy? Or do you just suck it up and avoid checking the rates again for several years?!

BerkshireBugsy

The other factor is whether your bank will limit the amount you can transfer either directly or indirectly in one go.

username.exe

Thanks for pointing this out - browsing XE I see that the maximum for a daily transfer is around 5.5k, I was not aware.

dunroving

Link? Never heard that before.

Sally Redux

You have to get it authorised. There will be people at the bank who can authorise up to a certain amount depending on their seniority.