Buying US Dollars - Will GBP strengthen during the Olympics?

[Silverbullet767]

Afternoon PH'ers.

I will be travelling to the US a week before the Olympics start, obviously I want as many $ for my £ as possible.

Anyone with a crystal ball able to forecast if the GBP will increase in strength against the USD in the lead up to the Olympics? Or should I start buying currency now?

[lockhart flawse]

No-one will have a clue but I can't think why the Olympics would have much effect either way. You will do better to be sure you buy online from someone like Travelex.

L.F.

[audidoody]

Buy now. It may fall later. Or rise.


ETA: As anyone with this certain knowledge of future currency exchange movements could easily become one of the wealthiest people in the world I suspect you will not find the information you are seeking here.

Edited by audidoody on Thursday 19th April 14:37

[Puggit]

I don't think the Olympics will have much bearing - however it may make the GBP stronger at small forex sites in London as they try to cash in on foreigners who are here during the games.

[AdamTheTrader]

In a nutshell the GBP and EUR is currently sitting high in relation to USD mainly thanks to the disappointing results in first-quarter US market performance. Future quantitative easing is also yet to be confirmed (though personally I think it will be at some point this year).

I highly doubt the Olympics will have an effect on the exchange rate among the many other externalities.

edited to answer question: I would say buy now- The US market's slowing down and the Euro's looking a bit grim. It won't be long before the both of them announce some artificial stimulus in order to get the market moving again- the Feds will be propping things up as long as they can

Edited by AdamTheTrader on Thursday 19th April 20:42

[Deva Link]

Silverbullet767 said:

Or should I start buying currency now?

Start buying it now. It's not a bad rate currently and, unless you're taking a huge amount of money it would take a big rate change to make much difference in the grand scheme of things.

[a311]

audidoody said:

Buy now. It may fall later. Or rise.


ETA: As anyone with this certain knowledge of future currency exchange movements could easily become one of the wealthiest people in the world I suspect you will not find the information you are seeking here.

+1 to this. AdamTheTrader also makes some good points on what affects currencies. The larger swings occur when base rates of central banks are altered up and down as both we and the US are pretty much rock bottom I don’t see any significant shifts. Looking at somewhere like Oz that missed most of the crash have maintained a relatively high rate so the £ is in the toilet aganist the Aus $. Sentiment and economic data closer to the time could give you +/- a pence or two in either direction. I wouldn’t loose any sleep over it and as it’s been pointed out it’s a decent rate at the moment. Travelling to the US over the last 4 odd years I’ve had $2.10 to $1.30.

[Silverbullet767]

Thanks for the tips, ordered my spending money for the trip.