Exchange rate. Should I?

[Sunset_Princess]

Just popped into First Choice on my lunch to see how the exchange rate is doing ready for our holiday in Sept. they could offer me £1000 at 1.51 today. Should I or shouldn't I. Worried if I wait it will lower but if I buy then I miss out on a better one in the coming months.
£1000 is all we want to cant buy some now and some later as its 1.51 for the higher amount

 

[MrRomance]

I just took the plunge and took $1.52 with American Express because indications on the markets would suggest it is more likely to stay the same or drop than it is to go up too much. You could average it out (by splitting your purchase of currency over a few months) but I felt that 1.52 is probably the best we'll get before we go.

I think also you have to bear in mind that the difference is negligible unless there is a big drop, a big hike or you're changing a big amount.

Think of it like this

If you take Covent Garden today at $1.5376 - £500 buys you $768.80
If you took the lowest rate offered today from RBS $1.48 you'd get $740

While I agree that $28 is $28 more to spend, it's not going to make you or break you, so I would buy if you're happy with the rate you're offered.

 

[Sunset_Princess]

I just remember 2/3 years ago it being 1.60! I guess it's not going to be up there again anytime soon!

 

[Ciorsdah]

I remember the days of 1.90 upwards.... Oh how I yearn for them again!!

 

[MrRomance]

I remember the days of 1.90 upwards.... Oh how I yearn for them again!!

Oh those were the days! I remember our early trips to Florida, we got $1.98 and $1.94.

I'm not seeing a return to the glory days for a LONG time because the US economy is stronger than the UK economy. The US is in something of a recovery from the recession, the UK on the other hand is barely holding off a triple dip.

 

[scoobydooby]

Our first trip was 1.9. Took £1,000 only, bought all our food with that too and came back with change. Those were indeed the days!!!

 

[MrRomance]

Our first trip was 1.9. Took £1,000 only, bought all our food with that too and came back with change. Those were indeed the days!!!

First time we went when we got $1.98, I went with my parents and sisters. I took £500, we stayed off site on 192 at what was then the Econolodge Maingate West (I think it's Champions World or something these days) I bought all my food, 5 day hoppers and a suitcase full of Levis and came home with dollars in my pocket. Good times!

 

[fairytale]

I took the plunge and bought half of ours over the weekend, got 1.529 off the high street so was pleased with that.

Speculation is that once the new governor of the BoE steps in the rate could drop rapidly, don't really understand why but this is what the majority of the forecasters are saying.

But again, who really knows

Annette

 

[Disneymad]

Speculation is that once the new governor of the BoE steps in the rate could drop rapidly, don't really understand why but this is what the majority of the forecasters are saying.

But again, who really knows

Annette

The way I understand it it that the reason the new Governor would have a negative effect is that they think he's a bigger fan of QE (quantitative easing) - ie physically printing more money to buy up debt with.

This is good for giving businesses cash flow which then should stimulate the economy but bad for inflation so potentially will stop people going out on the High Street to spend their hard earned cash because everything is more expensive. It is also seen to be less effective each time you do it (and BoE has done it a couple of times already).

The $ is at it's best rate in about 6 months - I normally buy in small bite sized chunks when I'm happy with a rate and am now probably going to go grab a few tomorrow - I figure even if it goes up further it won't be by much, but with things so erratic right now it is more likely to go back down (especially with my luck!).

 

[MrRomance]

I took the plunge and bought half of ours over the weekend, got 1.529 off the high street so was pleased with that.

Speculation is that once the new governor of the BoE steps in the rate could drop rapidly, don't really understand why but this is what the majority of the forecasters are saying.

But again, who really knows

Annette

I think the speculation has some solid basis given his track record in Canada. His appointment was very much political because he shares an ideology with the Chancellor. Whether it will drop like a stone remains to be seen, but I'd be more inclined to believe that the rate will drop for £ to $ than that it will rise. In fairness to Carney, the Canadian economy was largely unscathed during the recession and the Canadian dollar rose against other major currencies. The problem is, his critics suggest that it wasn't his economic policy that made that happen, it was the strong regulation of the Canadian banks that was already in place. My guess is it will drop in the short term, but 18 - 24 months from now it will strengthen a bit.

 

[wayneg]

I just remember 2/3 years ago it being 1.60! I guess it's not going to be up there again anytime soon!

No-one knows, it could do. It might drop. Interbank rate was down at $1.55 this morning, upto $1.5644 now, a 3 month high.
I gave up years ago with all this hassle, so much stress trying to buy at the right time, I just accept what I get on my credit card

 

[happyj]

I remember the days of 1.90 upwards.... Oh how I yearn for them again!!

I remember the near $2.00 rate. That is when we bought into DVC. The best financial decision we ever

 

[Sunset_Princess]

I went back to First Choice today and got the full £1000 at 1.51 wooo! Now no looking at the exchange rate until we go!!

 

[bazzanoid]

DW took the plunge and ordered £1500 from Fairfx today