Buying some dollars in preparation for Brexit
Discussion
Possibly a topic done to death, I am considering taking some of my savings and buying some dollars or a similar investment outside of europe, in case of another drop in value of the pound following brexit.
Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
Max5476 said:
Possibly a topic done to death, I am considering taking some of my savings and buying some dollars or a similar investment outside of europe, in case of another drop in value of the pound following brexit.
The dollar is not really a currency without Risk. So far the Euro performed better a.k.a. stable
Max5476 said:
Possibly a topic done to death, I am considering taking some of my savings and buying some dollars or a similar investment outside of europe, in case of another drop in value of the pound following brexit.
Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
I think there may be better ways to spend your money.Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
Max5476 said:
Possibly a topic done to death, I am considering taking some of my savings and buying some dollars or a similar investment outside of europe, in case of another drop in value of the pound following brexit.
Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
This is emphatically NOT a suggestion, merely an observation.Having never done anything like this before (I currently just have a standard ISA and E-Savings account, on probably very poor returns) I'm not sure of the best way to do this.
I'm only looking to buy £1000 - £2000 worth, so I'm considering just getting it from the best online travel cash site. Is there a bank account available where it could be earning interest at the same time? I presume their would then be ongoing fees to consider as well.
I was going to wait until February / March to buy the dollars, apart from the mid-term elections in November, are there any other upcoming events (I know it's impossible to predict the future) which are likely to drop the value of the dollar. (They seem to regularly have to shut down the government for lack of money, but I'm not sure when that is)
Thanks
The Money Pages, in last Friday’s London Evening Standard were buzzing about a possible good outcome to the Brexit discussions, some pundits were predicting a possible $1.40 to £1.00 rate by the end of the year.
As you yourself said, it’s impossible to predict the future, but I’m alight at the thought of a couple of weeks in Punta Gorda FL in April 2019 maybe, que sera, sera.
Max5476,
Looks like you're thinking of holiday money, so if you do proceed then best to get the currency for where you are likely to go on holiday. Several years ago I was thinking on the same lines so I switched some £s into $s and also €s, ie unto the currencies that I would most likely be wanting in the future. I still have some of the original $s and €s.
So far this has proved to be worthwhile as the value of the £ has reduced against these currencies.. Mind you, I decided to do this not as a serious hedge against the £, more because of transaction costs and a bit of security.
R.
Looks like you're thinking of holiday money, so if you do proceed then best to get the currency for where you are likely to go on holiday. Several years ago I was thinking on the same lines so I switched some £s into $s and also €s, ie unto the currencies that I would most likely be wanting in the future. I still have some of the original $s and €s.
So far this has proved to be worthwhile as the value of the £ has reduced against these currencies.. Mind you, I decided to do this not as a serious hedge against the £, more because of transaction costs and a bit of security.
R.
the effects of Brexit on GBP have already been factored in so the pound isn’t going to suddenly collapse on the day of leaving. You only have to look at GBP/USD rates to see the up and down effects that the daily drip feed of news has on exchange
If you’re looking at £1-2k then the potential up or down sides aren’t big enough to worry about.
As has already been said, USD may not be the stable choice, especially with Trump at the wheel. A lot can happen in both the US and Brexit land in the next six months, you’re as likely to be down as you are up.
If reports are to believed there will be so much travel chaos for the first few months you won’t want to go to the Eurozone anyhow.
My Brexit plans are limited to swapping the usual two to three euro holidays for one long haul holiday next year.
If you’re looking at £1-2k then the potential up or down sides aren’t big enough to worry about.
As has already been said, USD may not be the stable choice, especially with Trump at the wheel. A lot can happen in both the US and Brexit land in the next six months, you’re as likely to be down as you are up.
If reports are to believed there will be so much travel chaos for the first few months you won’t want to go to the Eurozone anyhow.
My Brexit plans are limited to swapping the usual two to three euro holidays for one long haul holiday next year.
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