About USD against GBP, need some advice

natward40

Hi I was wondering if anyone with a bit more knowledge of currency rates could offer your opinion on the current exchange rate of the pound to dollar rising so much in the past few weeks, its gone from 1.33 to 1.43 in such a short period, in your expert opinion do you think this will go back down anytime soon or do you think it will continue to rise. The reason I ask is I'm from the UK but I have a cheque that is in US currency from Amazon and I've been holding on to it in hope it would go down to 1.30 which I read was predicted in a forecast of early 2018 I read at the end of last year but now its got me worried I'm going to lose out now at this current rate 1.42 but even worse if this continues to rise at the rate it has been going up.

Kind Regards,
Natward

mgdavid

natward40 wrote: »

....... I've been holding on to it in hope it would go down to 1.30 which I read was predicted in a forecast of early 2018 I............

that prediction was as good as any you'll get on here. And as you've seen, it was wrong.
If anyone on here was good enough to get currency predictions right they'd be so rich they wouldn't need to be on here...

Sharon87

Well it's now 1.4065, so went down slightly. It's up to you when you want to deposit your cheque. The exchange rate was really low after Brexit, so was bound to go up at some point. Exchange rates are really unpredictable. I would personally just deposit a cheque when I receive it so it can start earning some interest in a savings account!

ValiantSon

Trying to second guess what the exchange rate is going to do is nigh on impossible. You could get lucky, but you could also lose out by holding on until your favoured rate appears. All the time you delay, the value of the cheque is being eroded by inflation, not just changes in the exchange rate. Deposit the cheque and accept the rate that you get at the time. Sometimes you win and sometimes you lose.

Wish I could offer any guarantees on the exchange rate, but if I could, as has been said, I would be stupidly rich and living on my own Caribbean island.

jonesMUFCforever

OP be careful with the date of the cheque!
Banks tend to only accept them if less than 5 months old to leave time to process them before they become stale or out of date.