Guest guest17301 Posted October 6, 2008 Share Posted October 6, 2008 I don't pretend to know much about global currency and money markets etc but like many I am getting quite excited about the recent changes in the exchange rate. For people like my family and I, coming over in the next few months we stand to get more $ for our £ than we bargained for. Can anyone tell me what is likely to happen over the next few months? I know these things can be difficult to predict but is there any general feeling about the rising rate? :huh: Link to comment Share on other sites More sharing options...
Guest Andy and Tracy Posted October 6, 2008 Share Posted October 6, 2008 Good post. Andy is monitoring it - it's all happening so fast! 5 Oct $ 2.27 in the am to the £ $ 2.29 pm 6 Oct $2.34 am $2.43 pm We are still monitoring it and will look to exchange some money in the next week or two if it carries on. We went to Oz last year and got $2.40, this year we only got $2.01 - hell of a difference. Now it's up again. They reckon (according to the Economist on Sky News) the US will need to inject another $1.4 trillion dollars into the economy as the first $700 billion didn't work (huh?!) so we are gonna wait to see what happens when they next do that. I'm going to set up an exchange account ready so I can act quickly in case it starts going down again. Would be good to hear from some economic brains on this site!... Tracy Link to comment Share on other sites More sharing options...
Guest YellowGecko Posted October 7, 2008 Share Posted October 7, 2008 I predict the AU$ will plummet and plummet, as in the 90's, just when we're needing to buy our GBP for going to the UK. Dammit!! All you coming out here are laughing all the way to the bank right now! Jo x Link to comment Share on other sites More sharing options...
Guest beermeister Posted October 7, 2008 Share Posted October 7, 2008 Right, I've no qualifications in economics, no real experience in trading currencies, and am probably speaking through my backside, but here's what I reckon: Australia's $ has weakened recently because it has cut interest rates (meaning investors can get a better return on their cash elsewhere, so everyone wants to sell their A$, making them cheaper). UK is talking about interest rate cuts, but unless inflation shows signs of weakening, that might not happen - I think Thursday 9th October is the next meeting and it will probably be a cliff hanger. If interest rates in UK go down, the £/A$ will probably weaken. BUT, there is some major economic turmoil at the moment, mainly with banks and other financial institutions showing signs of going out of business or just outright collapsing which jolts that country's share market a lot. Who knows, but there might be many more roller coaster hills yet, and perhaps bigger than ones we've already seen. As each country reacts to these "unexpected" horror stories, expect currency rates to fluctuate quite a bit as traders move money in and out of various markets. So, I don't think you can expect to see an increase in the £/A$ continue as a long trend....you need to pick your peak and go for it (and then don't start watching it again after you make the transaction, thinking about how much more money you'd have if only you knew). Link to comment Share on other sites More sharing options...
Guest earlswood Posted October 7, 2008 Share Posted October 7, 2008 It was a topic at work today, a guy who is a whiss kid on the markets said it is all about timing as the Oz Dollar could weaken at any time as Australia is also on the brink of recession...just luck I suppose. Link to comment Share on other sites More sharing options...
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