Interest Rate Cut & Rate of Exchange for £

oshoshitzu

I will be visiting the U.S next year for at least 3 months on a touring holiday probably around February. Should I buy US dollars now or wait? I am concerned that the value of the pound will seriously reduce in value shortly after todays interest cut.

gozomark

as always, currency forecasting is a toss of a coin, and any views expressed, however well thought out, are no more likey to be right than pure guessing

oshoshitzu

gozomark wrote: »

as always, currency forecasting is a toss of a coin, and any views expressed, however well thought out, are no more likey to be right than pure guessing

But won't today's big interest rate cut negatively affect the value of the pound?

gozomark

well it hasn't so far....its now old news

withabix

Base rate cut had largely been factored in (well most of it anyway) by the money markets.

US FR will probably drop their rates even lower. Who can tell??

neil324

Most of its factored in, the pound is up on the day to the Dollar. Although by next year who knows, maybe an idea to change if you see a spike of about 5c very soon to about 1.65. Can't see the pound going any higher for a few years.

purch

But won't today's big interest rate cut negatively affect the value of the pound?

Not necessarily.

Relative interest rates have always had little bearing on Exchange Rates over time.

Unless you have a HUGE differential, (as in the carry trade) then Interest rates are a non factor.