exchange rate

[bazz]

hi,

 

I signed a fixed rate contract last week with moneycorp as i thought the exchange would keep getting worse. now this week it has gone up! i am gutted to see i am losing money now!!

 

if anyone knows if the exchange rate will continue going up please let me know also if you know a way out of a contract haha!

 

thank you

[fleabo]

You will only lose money if you transfer it back to pounds. Be happy with the AU $ you now have - get them invested somewhere and watch them grow.:wubclub:

[sgperry]

Interesting article about Sterling - and seems to make sense, to me anyway:

 

1 - bad news about the election has already been priced in

 

2 - its now widely recognised by the market that all parties will address the deficit after the election (so outcome isn't as important as it was a couple of months ago - see 1 above)

 

onwards and upwards I say, fingers crossed

 

Sterling won't get hung up on hung parliament | Personal Finance | Reuters

[Guest Guest31881]

Interesting article about Sterling - and seems to make sense, to me anyway:

 

1 - bad news about the election has already been priced in

 

2 - its now widely recognised by the market that all parties will address the deficit after the election (so outcome isn't as important as it was a couple of months ago - see 1 above)

 

onwards and upwards I say, fingers crossed

 

Sterling won't get hung up on hung parliament | Personal Finance | Reuters

 

 

I find the article very believable, the money markets work on the basis of guessing what is going to happen, so the fact that it looks like a hung parliament will already have been taken into account with their dealings.

 

I also presume that although no party will admit that they are looking to form an alliance with another party to form a government, the back room boys will be formulating agreements and policies that lead to an alliance of two parties to manufacture a working majority for a two party alliance.

[KIRK AND CO]

hi,

 

I signed a fixed rate contract last week with moneycorp as i thought the exchange would keep getting worse. now this week it has gone up! i am gutted to see i am losing money now!!

 

if anyone knows if the exchange rate will continue going up please let me know also if you know a way out of a contract haha!

 

thank you

ouch take some advise stay away from the bookies LOL

[fleabo]

Interesting article about Sterling - and seems to make sense, to me anyway:

 

1 - bad news about the election has already been priced in

 

2 - its now widely recognised by the market that all parties will address the deficit after the election (so outcome isn't as important as it was a couple of months ago - see 1 above)

 

onwards and upwards I say, fingers crossed

 

Sterling won't get hung up on hung parliament | Personal Finance | Reuters

 

Thanks for the link. Any potential good news is welcome - the suggestion in the article being that we may not get any more falls in the £ against the major currencies.:yes:

 

It seems to me that the it is the strength of the AU$ against the main global currencies that is the 'problem' (for us wishing to exchange £ to AU$) rather than the relative position of sterling against the euro or the dollar. The pound could rise against the both the euro and the US$ but we could still be at $1.65?

 

I'll go back to daydreaming of visa approvals, better exchange rates and offers on houses!

 

Cheers.

[sgperry]

 

It seems to me that the it is the strength of the AU$ against the main global currencies that is the 'problem' (for us wishing to exchange £ to AU$) rather than the relative position of sterling against the euro or the dollar. The pound could rise against the both the euro and the US$ but we could still be at $1.65?

 

 

 

Yes, but I would be surprised if the pound rose against both the euro and the US dollar but didn't rise against the AUS dollar. (I guess if it did I would be tempted to exchange my pounds for US dollars).

 

However, stranger things have happened, I suppose! I also read somewhere that the revaluation of the Yuan may impact the value of the AUS dollar (not sure how), and this would probably be added good news for sterling.

 

Speaking with currency dealers, naturally they can't say much but no one seems to flinch when I say my currency expectation is $1.80 to the pound in the second half of this year.

 

Its ultimately a wait and see game though, isnt it!

[bazz]

thanks all for your info! very helpful! I have spoken to an economist (i think thats how you spell it) and he said there is no way of telling what it is going to do now! he said he thinks i made a wise decision getting a fixed rate as i know what i am going to get and i dont have to worry! it went up the other week but then it came back down so its unreliable at the moment x

[sgperry]

bazz, I think you've done the right thing. If you have a firm commitment for the money at a certain date, fixing it at least takes the uncertainty out of it all. Yes, you'll never know if you could have gotten a better rate - but you will at least know you won't get a worse one.

 

A little like only gambling what you can afford to lose and all that.

[fleabo]

Yes, but I would be surprised if the pound rose against both the euro and the US dollar but didn't rise against the AUS dollar. (I guess if it did I would be tempted to exchange my pounds for US dollars).

 

However, stranger things have happened, I suppose! I also read somewhere that the revaluation of the Yuan may impact the value of the AUS dollar (not sure how), and this would probably be added good news for sterling.

 

Speaking with currency dealers, naturally they can't say much but no one seems to flinch when I say my currency expectation is $1.80 to the pound in the second half of this year.

 

Its ultimately a wait and see game though, isnt it!

 

Thanks.

 

Yes, it is a wait and see game, and at the end of the day you get what you get when you need too get it. :wacko:

 

Glad to hear that $1.80 does not seem to be out of the ballpark though. Cheers.