mr luvpants Posted October 6, 2009 Share Posted October 6, 2009 What is going on with the pound! :chatterbox:Somebody on here was complaining that they got $1.98 a few weeks ago. Sounds like they got a result. Surely it cant go much lower? Does anyone know what the Powers that be say about the pounds/dollar long term prospects? Just glad I am not going till the end of next year. Probably by then the two will be on a par knowing my luck!:cry: Link to comment Share on other sites More sharing options...
Guest Guest31881 Posted October 6, 2009 Share Posted October 6, 2009 What is going on with the pound! :chatterbox:Somebody on here was complaining that they got $1.98 a few weeks ago. Sounds like they got a result. Surely it cant go much lower? Does anyone know what the Powers that be say about the pounds/dollar long term prospects? Just glad I am not going till the end of next year. Probably by then the two will be on a par knowing my luck!:cry: Australia raised interest rates and that makes the $ more attractive than the £, the Bank of england have said they want a weak £ to help stimulate the economy, so who in their right mind is going to support the £ when the Uk are willing to let it fall. My wife moved to Australia 12 months ago, i joined her a few months ago, In the time she has been here My pension that we were using to live on, has dropped in value by $500 a month. if the £ keeps dropping we will not be able to afford to live here and will have to consider moving back. The people who are thinking of moving back to the Uk or who have to send money to the UK are in the best position. I cannot see the £ recovering untill the BOE decide to increase rates in the UK, in the mean time it can only get worse with the Reserve bank of Australia saying this is the first in a line of rate increases. Hopefully by the time you come over it will have recovered for you, for some of us, it may be to late. Link to comment Share on other sites More sharing options...
Guest lee n sar Posted October 6, 2009 Share Posted October 6, 2009 Doesnt look good for me moving over in 2 weeks.:cry: Link to comment Share on other sites More sharing options...
Guest PhilBen Posted October 6, 2009 Share Posted October 6, 2009 The main thing at the moment is not to panic buy. Depending on your timescale we will see the rate come back Link to comment Share on other sites More sharing options...
Que Sera Sera Posted October 6, 2009 Share Posted October 6, 2009 I know everytime I log on here its gone down again....just as well I am not transferring money anytime soon :swoon: Link to comment Share on other sites More sharing options...
Guest PhilBen Posted October 6, 2009 Share Posted October 6, 2009 I know everytime I log on here its gone down again....just as well I am not transferring money anytime soon :swoon: If you have time on your side you should be ok Link to comment Share on other sites More sharing options...
TheBrammies Posted October 6, 2009 Share Posted October 6, 2009 ive watched it go down from 2.45 the trouble is the uk has to much debt and the interest rate is too low compared to australia it will be a while before the rate improves in your favour by and substancal amount imho Link to comment Share on other sites More sharing options...
Life on easy street Posted October 6, 2009 Share Posted October 6, 2009 What is going on with the pound! :chatterbox:Somebody on here was complaining that they got $1.98 a few weeks ago. Sounds like they got a result. Surely it cant go much lower? Does anyone know what the Powers that be say about the pounds/dollar long term prospects? Just glad I am not going till the end of next year. Probably by then the two will be on a par knowing my luck!:cry: I think we are seeing a repeat of the 1970’s a devaluing of the pound followed in a couple of years time of double digit inflation for a few years. I really hope I am wrong on this. have a look at historic exchange rates Exchange Rate: UK Pound Sterling per Australian Dollar I am not an economist. this is just my opinion from what i have read from economists from around the world. Link to comment Share on other sites More sharing options...
Guest Posted October 6, 2009 Share Posted October 6, 2009 The main thing at the moment is not to panic buy. Depending on your timescale we will see the rate come back when will THAT be ???????????????:wacko: - I dont know what to do... leaving UK in next couple of months! ... do we transfer as little as poss and leave the rest in the bank here? Link to comment Share on other sites More sharing options...
Guest Darwin's coming too Posted October 6, 2009 Share Posted October 6, 2009 JoJo As srp and ben said the rate isn't going to improve anytime soon, the Oz economy is the only one of the G20 nations to have grown in the first quarter this year and they're also the only country to raise base rates. The £ will stay at this low level or fall further until UK base rates increase. I think it will be at least 12mths until we get back to £1=$2. Only transfer what you need for 4mths by which time you should have jobs and money coming in to support you. If you want to purchase a house within the next 12mths you have to gamble on going with the current $1.78/£1 or risk it being $1.70/£1 or lower or poss higher ! What you also need to consider is how much the increase £/$ will earn for you e.g. if you have £50k it can be worth $89k at $1.78 or $110k at $2.20 BUT by the time you've waited to make an extra $21k (which could take 2yrs or more) house prices in Oz will have probably increased by that amount or more. Lisa Link to comment Share on other sites More sharing options...
Guest Guest31881 Posted October 6, 2009 Share Posted October 6, 2009 I think we are seeing a repeat of the 1970’s a devaluing of the pound followed in a couple of years time of double digit inflation for a few years.I really hope I am wrong on this. have a look at historic exchange rates Exchange Rate: UK Pound Sterling per Australian Dollar I am not an economist. this is just my opinion from what i have read from economists from around the world. I think you could be spot on with this opinion, once retail prices start to rise in the UK they could well rise very quickly and lead to very high inflation, That will force interest rates to rise in an effort to control inflation. That will push the price of the £ up and exchange rates will improve. That will be benificial to most of us, But if they improve to much then the people who have to send money back to the UK will start to suffer. Link to comment Share on other sites More sharing options...
KIRK AND CO Posted October 6, 2009 Share Posted October 6, 2009 JoJo As srp and ben said the rate isn't going to improve anytime soon' date=' the Oz economy is the only one of the G20 nations to have grown in the first quarter this year and they're also the only country to raise base rates. The £ will stay at this low level or fall further until UK base rates increase. I think it will be at least 12mths until we get back to £1=$2. Only transfer what you need for 4mths by which time you should have jobs and money coming in to support you. If you want to purchase a house within the next 12mths you have to gamble on going with the current $1.78/£1 or risk it being $1.70/£1 or lower or poss higher ! What you also need to consider is how much the increase £/$ will earn for you e.g. if you have £50k it can be worth $89k at $1.78 or $110k at $2.20 BUT by the time you've waited to make an extra $21k (which could take 2yrs or more) house prices in Oz will have probably increased by that amount or more. Lisa[/quote'] at last a sensible look at things best reply. Link to comment Share on other sites More sharing options...
twinsmom65 Posted October 6, 2009 Share Posted October 6, 2009 Sorry folks, probably gonna piss some people off, but it makes me laugh when British people complain about the exchange rate. When we moved over from Canada, our Canadian dollar was only worth $1.18 to the Australian dollar. We thought that was a great rate then for us. Which other country almosts gives you double your money. If you think about the big picture, most Brits are really lucky when they move, you get to almost double your equity, whether you move to Australia, Canada or most other countries. I think that is one of the reasons that most brits when they emigrate to another country are able to better themselves. Think about it, if you only got $1.18 to the pound, your money would not go as far here. Just my thoughts Karen Link to comment Share on other sites More sharing options...
Guest Guest31881 Posted October 6, 2009 Share Posted October 6, 2009 Sorry folks, probably gonna piss some people off, but it makes me laugh when British people complain about the exchange rate. When we moved over from Canada, our Canadian dollar was only worth $1.18 to the Australian dollar. We thought that was a great rate then for us. Which other country almosts gives you double your money. If you think about the big picture, most Brits are really lucky when they move, you get to almost double your equity, whether you move to Australia, Canada or most other countries. I think that is one of the reasons that most brits when they emigrate to another country are able to better themselves. Think about it, if you only got $1.18 to the pound, your money would not go as far here. Just my thoughts Karen Sorry i do not follow the logic of your thinking, if it costs me £150,000 to buy a house in the UK and $300,000 to buy one in australia how am i doubling my equity when i can only get $268,000 in exchange for my £150,000. When Australia went to the Decimal system they chose to make thier $ worth half the £, so $2 were equal to £1 . so when you exchanged money between the two countries you got $2 for £1 if the rate falls below that you are losing, it climbs above you are winning. I know that is a simplistic way of looking at it, but to say you get more $ than £ does not work. Link to comment Share on other sites More sharing options...
twinsmom65 Posted October 6, 2009 Share Posted October 6, 2009 Sorry i do not follow the logic of your thinking, if it costs me £150,000 to buy a house in the UK and $300,000 to buy one in australia how am i doubling my equity when i can only get $268,000 in exchange for my £150,000. When Australia went to the Decimal system they chose to make thier $ worth half the £, so $2 were equal to £1 . so when you exchanged money between the two countries you got $2 for £1 if the rate falls below that you are losing, it climbs above you are winning. I know that is a simplistic way of looking at it, but to say you get more $ than £ does not work. I guess what I was trying to say was to thank your lucky stars that you live in a country that gives you a better exchange rate, yes the pound has fallen below the two to one mark, however, compared to a lot of other countries you are still a hell of a lot better off. Try converting it at $1.18 and see how far you go with that. For example if you had 30,000 pounds in equity in england that would equate to $53400.00 australian dollars. For us, the same $30,000 (in Canadian dollars) in Canada would equate to $35,400.00 in Australian dollars. So yes the pound has fallen, but you are still getting more for your money than alot of other countries whose dollar is not as strong as the pound. I guess I am trying to say that if i sold my house in Canada and had $50,000 equity it would still not be equal to someone selling their house in the UK and getting 50,000 pounds equity. The person from the Uk would still be better off here in Australia because of the exchange rate. Even if it is not two to one, you guys are still way ahead of the rest of us with less stronger currencies. Link to comment Share on other sites More sharing options...
Guest guest30038 Posted October 7, 2009 Share Posted October 7, 2009 I guess I am trying to say that if i sold my house in Canada and had $50,000 equity it would still not be equal to someone selling their house in the UK and getting 50,000 pounds equity. The person from the Uk would still be better off here in Australia because of the exchange rate. Even if it is not two to one, you guys are still way ahead of the rest of us with less stronger currencies. Of course not. :nah: 1 Canadian dollar is only approx 5.9 of a pound. Your equation is totally irrelevant because C$50.000 cannot be compared to 50,000 uk pound. To compare you would have to say C$50000 = 29, 650 British pounds (approx) C$50000 buys A$53, 135 29,650 sterling buys A$53, 104 So it appears Canada has a better exchange rate,,,,,,,,,,that is if you compare the Canadian dollar to the pound and then convert. kev Link to comment Share on other sites More sharing options...
KIRK AND CO Posted October 7, 2009 Share Posted October 7, 2009 does ity realy matter if you have got to change your money then you accept the rate if you havent got to you wait simple. Link to comment Share on other sites More sharing options...
Guest jamo123 Posted October 7, 2009 Share Posted October 7, 2009 You all want to try living in Oz and earning your wage in the UK like I do! I'll be busking down George St soon. Link to comment Share on other sites More sharing options...
Guest jamo123 Posted October 7, 2009 Share Posted October 7, 2009 I know I'm new here and maybe shouldn't speak out of turn - but what on earth on people on about saying that exchanging 10,000 of one currency is somehow equal to exchanging 10,000 of another!? If one unit of those external currencies purchased the same amount of apples in those countries then great, you have a point. But to say exchanging 1 million Zimbabwe dollars into 1 AUD is much worse than exchanging 1 pound is madness. An apple in the UK costs a pound, and an apple in Zimbabwe costs a Million dollars - so it makes not a fart of difference. If it did I'll be making unstoppable billions as we speak by trading currencies. (I appreciate Zim dollars may not be the best example, but they deal in high numbers!!). Link to comment Share on other sites More sharing options...
gpo1971 Posted October 7, 2009 Share Posted October 7, 2009 Guy on Sky News this morning saying that he expects the AUS$ to continue to get stronger throughout 2010. I think it buys US87c at the moment but he reckons an AUS$ will be worth more than a US$ at some point in 2010. Not sure how that will affect the £. Link to comment Share on other sites More sharing options...
tracy123 Posted October 7, 2009 Share Posted October 7, 2009 I know I'm new here and maybe shouldn't speak out of turn - but what on earth on people on about saying that exchanging 10,000 of one currency is somehow equal to exchanging 10,000 of another!? If one unit of those external currencies purchased the same amount of apples in those countries then great, you have a point. But to say exchanging 1 million Zimbabwe dollars into 1 AUD is much worse than exchanging 1 pound is madness. An apple in the UK costs a pound, and an apple in Zimbabwe costs a Million dollars - so it makes not a fart of difference. If it did I'll be making unstoppable billions as we speak by trading currencies. (I appreciate Zim dollars may not be the best example, but they deal in high numbers!!). Welcome to PIO You go and have your say mate. Cheers Geoffrey Link to comment Share on other sites More sharing options...
Guest PhilBen Posted October 7, 2009 Share Posted October 7, 2009 when will THAT be ???????????????:wacko: - I dont know what to do... leaving UK in next couple of months! ... do we transfer as little as poss and leave the rest in the bank here? Hi if you only have two months then your options are very limited. If you transfer the min amount you need perhaps you might want to think about placing a limit to take advantage of the overnight rates. Then wait for a while to see how the markets are going. You have got options but you need to a fx trader to help you work out the best way forward. Link to comment Share on other sites More sharing options...
Guest dominiccrowley Posted October 8, 2009 Share Posted October 8, 2009 Hi Emigrating at the end of year and am also concerned about the plummeting exchange rate. At risk of sounding hopelessly optimistic, there are three things that are a certainty (almost!) in the coming 6 months. 1) The government (or Bank of England) will in the next month or so announce that the UK is out of recession. 2) Within the 1st or 2nd quarter of coming out of recession the BOE will want to increase, slowly, interest rates. 3) There's a general election planned in April, and whatever the outcome I suspect with renewed optimism that always follows an election there could be a bounce in the value of the pound, albeit a temporary one. Of course I'm not an economist, I'm just crossing my fingers like the rest of us, however I don't plan to exchange more than is absolutely necessary until all events have taken place. Link to comment Share on other sites More sharing options...
Guest PhilBen Posted October 8, 2009 Share Posted October 8, 2009 HiEmigrating at the end of year and am also concerned about the plummeting exchange rate. At risk of sounding hopelessly optimistic, there are three things that are a certainty (almost!) in the coming 6 months. 1) The government (or Bank of England) will in the next month or so announce that the UK is out of recession. 2) Within the 1st or 2nd quarter of coming out of recession the BOE will want to increase, slowly, interest rates. 3) There's a general election planned in April, and whatever the outcome I suspect with renewed optimism that always follows an election there could be a bounce in the value of the pound, albeit a temporary one. Of course I'm not an economist, I'm just crossing my fingers like the rest of us, however I don't plan to exchange more than is absolutely necessary until all events have taken place. Hi you should make sure that you have a good fx account manager and keep in contact with them, he should be able to advise on types on contracts that could get you a better rate. Link to comment Share on other sites More sharing options...
Guest Guest31881 Posted October 8, 2009 Share Posted October 8, 2009 HiEmigrating at the end of year and am also concerned about the plummeting exchange rate. At risk of sounding hopelessly optimistic, there are three things that are a certainty (almost!) in the coming 6 months. 1) The government (or Bank of England) will in the next month or so announce that the UK is out of recession. 2) Within the 1st or 2nd quarter of coming out of recession the BOE will want to increase, slowly, interest rates. 3) There's a general election planned in April, and whatever the outcome I suspect with renewed optimism that always follows an election there could be a bounce in the value of the pound, albeit a temporary one. Of course I'm not an economist, I'm just crossing my fingers like the rest of us, however I don't plan to exchange more than is absolutely necessary until all events have taken place. I tend to agree with you, again I am no expert but I feel your 3 points are valid. 1, The Uk should show sign's that the recession is over in next 8 weeks (hopefully) 2, Once out of recession, inflation will start to rise, that should push up interest rates. 3, A new goverment (who ever wins) should give a feeling of stability as the present goverment only have 6 months left. But i fully expect someone with more knowledge than us will post a educated reply:jiggy: Link to comment Share on other sites More sharing options...
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