US Dollar

[Aeronut]

Anyone else considered buying in a large quantity of dollars whilst the pound is so strong? About £1=$1.96 as a type.

Interested to hear how others manage their finances when training in the USA.

I've set up a dollar current account with citibank and its quite easy to transfer your sterling into dollars online with the click of a mouse. Just wiat till the price is right and hey presto. Their rates seem much better than high street banks eg about 2 cents below official rate whereas high street banks etc offer about 12 cents below. You get a "citicard" which can operate as a debit card in either sterling or dollars with a phone call, also good for use in ATMs with no fee and a dollar cheque book. Downside is that you need to maintain a £2000 or equivalent across both accounts. You can also set up a dollar savings account but interest rate is low 2.5% - but better than a shoe box.

I'm looking into trading with a FOREX account, not for profit but just as a money changer at the "official" rate - hit the peaks as they happen.

Anyone got any other $ ideas?

[Lucifer]

Don't do it unless you are an expert in FX trading.

The pound is not strong; the dollar is simply extremely weak. The difference is that the pound is not strong against other currencies in relative terms; the dollar nevertheless is weak against all currencies.

If Alan Greensapan and Ben Bernanke can't work out which way it will go, I don't see how a humble wannabe might be any better!

[Aeronut]

I wasn't talking about day trading just purchasing and using it as an exchange
ie make one transaction at a level I can see and be happy with - maybe watch it go ona peak. Then withdraw to a dollar account - not leap from currency to currency. I agree that would be a scary risky proposaition.

This humble wannabe does at least know that he can get $1.93 for each and every £ right now.

Your statement that the pound is not strong adds weight to a decision to buy now whilst it is high against the dollar.

Given that this is about as high as its been for years I have just "bought" a stack of dollars.


If the £ goes up I'll buy even more. If the £ goes down I have at least set my own exchange rate (with which I am happy) for the most of my time in states, or I could sell them back at a profit!
I wonder just how many wannabes are missing a trick here after spending so much time deciding to go the USA - "because its cheaper" (seperate debate) but then don't optimise by accepting a crappy high street bank rate or getting extra charges on their credit cards.

At least now I can budget in £ having set my rate.

I've been playing with the FOREX demo software and now I'm rich beyond my wildest dreams, in play Yen! Looking back I had to stake my next 10 years salary to earn 3 months salary!

[davey147]

If you want to buy currency, buy Euros now, then in 12 months use them to buy dollars.

Now is not the right tim to buy dollars, you will miss out. The dollar will hit at least $2.20 to the £ by the end of this year.

[Aeronut]

You might just be right Davey!
Thanks

[captain_rossco]

The dollar will hit at least $2.20 to the £ by the end of this year.



the dollar/pound exchange is predicted/forecast at $1.93 in June this year (07), thats a fairly grand old increase to $2.20 before the year is out?

end of year is looking like 1.8something!!!!


Rossco:confused:

[Aeronut]

the dollar/pound exchange is predicted/forecast at $1.93 in June this year (07), thats a fairly grand old increase to $2.20 before the year is out.



Rossco:confused:


Truth is no one really knows all you can do is monitor the situation and jump in when you dare!

Deal or No Deal?

http://finance.yahoo.com/currency/convert?from=GBP&to=USD&amt=1&t=5y

[captain_rossco]

Hi Aeronut,

yep im with you. My point was the fluctuations are naturally unpredictable, rather than buy now. It would appear my previous post advocated jumping in, not intended.

We fly planes, what goes up.........:ok:

Rossco

PS No sign of that sushi book yet, anyone ordered from Amazon before?!!!!

[davey147]

Well i've just taken advise from my cousin, he's a stock market trader, also currency trader, he earns over 10 milion a year. But even me, who is not really wise in currency trading, can see with the current state that the USA is in (i.e. debt) the US dollar can only weaken against the pound and the UK's strong economy. But the Euro over the next year will probably gain strength over the pound, therefore its better to buy the Euro now, then use those to buy Dollars which should peek 2008 sometime (knowone knows)

This is how my cousin does it, he's got his 10 bedroom mansion, so he must be doing something right :)

But dont take advise of me, I would never get into currency trading unless you have knowledge of it and a lot of money.

Its probably better, if you have a bit of cash, invest it in the stock market. I invested 10k nearly 2 years ago, now I have made 1100% profit on my portfollio. So its funded my flight training :) Be carefull though, many are saying that there is going to be a stock market crash this year.

[captainyonder]

Hmmm....bulls**t alert!

[fescalised portion]

"Downside is that you need to maintain a £2000 or equivalent across both accounts. You can also set up a dollar savings account but interest rate is low 2.5% - but better than a shoe box."

That's not strictly true. You only have to have at least £2000 in any one of your accounts.

Also, you can have a sterling savings account which pays out around 5% and that can be used to transfer between USD and GBP as well.

That's the way I do it any way. I'm currently in the US and taking full advantage of it !!

[chrisbl]

Hmmm....bulls**t alert!

Tend to agree with you there but then no surprise.

[chrisbl]

Deal or No Deal?
http://finance.yahoo.com/currency/convert?from=GBP&to=USD&amt=1&t=5y

By the time you deal the real rate will be nearer 4 -5 cents less

[Aeronut]

May I ask - why close the dollar thread?

[scroggs]

Because, while a detailed discussion of exchange rates and currency trading may be very interesting, this isn't the place for it. Nor is there anywhere on Pprune that is appropriate for it. It is not a Flying Training subject, therefore it goes.

Scroggs