ADVICE(out of date)!! Buy Dollars tonight!!

[Daniel&family]

WEDNESDAY 24-4-04

The pound has dropped about 2.5c on the money markets today, however both M&S and Travelex rates are still $1.793. This rate is sure drop tommorrow morning unless the £ recovers overnight.

So if you are travelling soon and waiting to $'s, if you can order over the iternet NOW could be the best time.

Just my opinion, but I thought it worth passing on.

 

[signtalker]

Daniel, the dollar usually falls on a thursday/friday anyway ready for the weekend, the best time to buy is a tuesday!.
jules

 

[Daniel&family]

the dollar usually falls on a thursday/friday anyway ready for the weekend

Interesting theory, but I just can't see the logic, since it is the weekend both sides of the Atlantic.

Still IF? it works!

 

[Red-Snapper]

Signtalker is right - never buy money/Tc's on a weekend (including Monday) the rate almost always dips a bit at the end of the week and recovers by Tuesday.

Cant think why - (being cynical maybe most tourists buy holiday cash at the weekend and travel agents therefore drop the rate ?)

 

[Daniel&family]

The best time to buy is Tuesday??

I have done a little brief research to see if the facts back up this statement and using the travelex on-line tourist rate over the past 6 weeks I found that:

Tuesday was the best or joint best day twice and it was the 2nd best day once. However it was also the 2nd worst day twice.

The weekend was a bad time 3 occassions and the best time once.

Suprisingly to me, it seems over this period there was a element of fact in this statement (Wednesday was the best day overall),
but not being as cynical as Red-Snapper, I still can't see the logic.

The purpose of my original post was to point out that the spot rate had fallen by about 3cents that day and therefore the tourist would fall the next day (it subsquently fell by up to 5cents(M&S)the following day). Since the tourist rate is normally only changed once a day, I still believe the best way to predict a change in this rate in the short term, is to look at the spot rate in the evening and either buy on-line or wait accordingly.

 

[signtalker]

Sorry some of us, dont go into it in as much detail as you have done.

I was going on past experience, perhaps if you wanted a more indepth analysis of the dollar rate you should have posted on another board that could address the situation in the detail you request!

 

[kazzie]

I work part time for Thomas Cook in the foreign exchange and the rate ALWAYS drops at the weekend! You should be more cynical about large companies,I am

It was me who first posted this fact about 2/3 years ago to warn people!

It is basically as Red Snapper said, most banks don't open on a Saturday and the Post Office didn't use to but now does but not all day I think? So the FE in the various travel agents have a monopoly on the market at some pont at the weekend in the local area.You'd be amazed how many people do buy their currency on Sat/Sun,I guess they work and can't buy on other days

Even M&S and Travelex which offer good rates usually 'freeze' the rate at the weekend.I think this factor is because regardless of what happens in the money markets the companies cover themselves by freezing/dropping the rate in case the market does at the weekend,but won't reflect any rise in the $$ until after the weekend.

 

[Daniel&family]

Thanks for the explanation Karen NOW I understand 'and I thought these companies were run by such nice people'.

I believe my advice still stands though, as to the best way to predict which way the travel rates will go the following day.

I must go now, I've still got a little packing to do.

 

[kazzie]

Daniel & Family,


Those companies sure don't relect the massive amount of money they make with foreign exchange in their wages!

Don't know if anyone knows this but at Thomas Cook for example if you had to guess how much profit is made on travel and how much from FE I don't think anyone would guess correctly! The company makes anout 95% of it's profit from FE!

Anyways,have the most fantastic time on holiday

Tell us all about it when you get back

 

[deeg46]

Well we bought from M&S at the weekend a few weeks and got $1.85. Didn't see it go any higher after that. Mind you we'd been watching the rate everyday for weeks, in the end my nerves couldn't stand it and we decided if it went any higher so be it, the rate was much higher then when we went 2 years ago to Florida when we only got $1.34.

Dee

 

[Fantasia Sam]

You did well Dee