GBP/USD exchange rates

[RYH64E]

Unusually for me, I took the prudent step of hedging my USD currency requirements last Thursday, so I'm out of the currency markets for at least a couple of months, I've just had a call from the people who look after my currency advising me to buy some more at today's rate of 1.32 because they're expecting a fall to as low as 1.10 over the next few months, and that's against the USD not the EUR... I'll be putting my prices up to my UK customers from July and I won't be alone, anything priced in USD (oil, gas, anything from America and China) will be getting significantly more expensive any time soon.

[RYH64E]

Noblebenn said:

Argentex Chris provided us with some useful information recently on this. He advisors a lot of Pistonhead members.

If anyone knew what was going to happen they wouldn't have to work for a living, advice on currency market movements is little better than guesswork in my experience.

[RYH64E]

XMT said:

I am glad I came across this thread because this is something that has crossed my mind but it does have me a little worried. Are people really expecting USD to fall?

I just assumed it would stay around the same or increase?
If there is a general view point it will drop then I might open a dollar account and exchange some business funds. We import in USD and the current hit is bad enough, dont really want to take any further hits.

If we knew we'd all be rich, advice I've had is to expect further falls but who knows.

I've covered the next few months requirements and am putting up my prices to customers, even at 1.40 I need to increase prices to maintain margins. I've had a surprisingly understanding response from customers so far, they've all accepted the need for price increases.

[RYH64E]

I wouldn't be surprised if we see an interest rate cut soon, that won't do the pound any favours.

[RYH64E]

It's all guesswork.