Do I hold onto USD or convert them know into GBP before it drops further?

boingy

If we knew the answer to your question we'd all be rich.

Hoenir

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

InvesterJones

These probably aren't the forums for currency trading tips, but more relevant is making sure your $35K is earning a good interest rate - that will probably make more difference so if converting it means you can take advantage of better interest sooner then it's worth considering.

wmb194

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Hoenir

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Not sure how closely you've been following wider events over the pond. The concern has to be as to what comes next.  Credibility, confidence, trust, stability. trading relationships etc have been destroyed at a stroke.  Whtever the future holds. Going to be different to what we've been accustomed to since the end of WW2. 

wmb194

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Not sure how closely you've been following wider events over the pond. The concern has to be as to what comes next.  Credibility, confidence, trust, stability. trading relationships etc have been destroyed at a stroke.  Whtever the future holds. Going to be different to what we've been accustomed to since the end of WW2. 

Quite closely. It takes two to make a market. If you think it's the end of the USD then the euro is a logical pick.

Albermarle

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Not sure how closely you've been following wider events over the pond. The concern has to be as to what comes next.  Credibility, confidence, trust, stability. trading relationships etc have been destroyed at a stroke.  Whtever the future holds. Going to be different to what we've been accustomed to since the end of WW2. 

Quite closely. It takes two to make a market. If you think it's the end of the USD then the euro is a logical pick.

I asked the question a couple of weeks ago ' why was the Pound weak against the Euro' 
The answer seemed to be that in times of trouble ( with the US/Dollar in this case) the Euro was seen as more 'secure', and traditionally GBP suffered in times of economic turmoil and did well in better times

Interestingly as things have calmed down a bit, the Pound has regained some of the losses against the Euro.

wmb194

Albermarle said:

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Not sure how closely you've been following wider events over the pond. The concern has to be as to what comes next.  Credibility, confidence, trust, stability. trading relationships etc have been destroyed at a stroke.  Whtever the future holds. Going to be different to what we've been accustomed to since the end of WW2. 

Quite closely. It takes two to make a market. If you think it's the end of the USD then the euro is a logical pick.

I asked the question a couple of weeks ago ' why was the Pound weak against the Euro' 
The answer seemed to be that in times of trouble ( with the US/Dollar in this case) the Euro was seen as more 'secure', and traditionally GBP suffered in times of economic turmoil and did well in better times

Interestingly as things have calmed down a bit, the Pound has regained some of the losses against the Euro.

Yes, you can see two examples of whooshes lower into the c.1.15/1.16 range on this chart. I forget what the panic was is August - the election? - but then everyone calms down and realises the world hasn't ended and it moves higher.

 

GazzaBloom

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

Hoenir said:

wmb194 said:

1098s said:

I am holding 35k in USD in my bank account. I am concerned the rate against GBP is again going to continue to fall. Do I take the hit now or will the rate come about in the next 6 months.

Do you need the money in sterling soon? The other day someone on Bloomberg said they think that sterling is far too strong at c.1.34 GBP/USD and it should weaken but FX forecasting is notoriously difficult.

If investors continue to sell US $ denominated assets then the currency will continue to weaken. Nothing to suggest that there'll be any significant change of Administration policies anytime soon.  

Doesn't mean sterling strengthens. More likely the euro will.

The Euro area is likely to be harder hit by tariff's. The economic powerhouse of Germany is spluttering again as it was in the late 90's. Challenging times lie ahead. 

There are always challenges but this could mean the USD has weakened as far as it will.

Not sure how closely you've been following wider events over the pond. The concern has to be as to what comes next.  Credibility, confidence, trust, stability. trading relationships etc have been destroyed at a stroke.  Whtever the future holds. Going to be different to what we've been accustomed to since the end of WW2. 

Although not with the UK so it appears after Starmer and Mandelson's love in with Donald yesterday, the rhetoric suggest it's all sunlit uplands.

US deals with India and China will follow, not sure the EU tactic of WTO legal appeals will do them any favours with the White House incumbent.

but that's veering into politics…

Ref the $35K, I think the suggestion above is good, make sure it's working for you with interest earning power, whatever currency it's held in.