Whats the Dollar going to do?

[VEX]

Holidays are coming?

Do you think the holiday rate is going to 2:1 in the next couple of weeks?

V.

[JustinP1]

Yes.

[g4ry13]

I think you'll have a good holiday I don't want to stick my neck out on the line and give a rate I expect to see, but over $2 no problem.

[VetteG]

What about in the longer term, say later this year after the presidential elections? Do you think the dollar will strengthen then? The reason I ask is that I have dollars sitting in an account and I am looking for the best time to change them into sterling.

G

[g4ry13]

VetteG said:

What about in the longer term, say later this year after the presidential elections? Do you think the dollar will strengthen then? The reason I ask is that I have dollars sitting in an account and I am looking for the best time to change them into sterling.

G

Strengthen because of the elections or just later on in the year? I don't see why they would strengthen because of elections - if anything it's more uncertainty about the direction of the US. Also a factor is how long you're willing to keep the money there before you may need to take it out to use it.

There will probably be more fall-out from the "credit crunch" later on in the year as the fed keep cutting rates and pumping liquidity into the market and this can only go on for so long. So on that aspect, I don't expect things in the US to improve any time soon. The only saving grace for you may be if the UK economy starts to falter even more so and the MPC start slashing rates like the US.

(All my opinion of course and i'm sure someone will be along soon to tell me i'm wrong

[Timmy33]

Given that the 2.11 was pretty much an all time high versus the £. That 1.75 is the median.....with lows down at 1.50, and that we are currently at 2.00 I'd be inclined to stay put if you're holding $. The chances are the £ has a way to fall against the $.

One observation I'd make us that in the UK the public are so fixated with the $/£ rate that they are completely unaware of how much the £ has weakended against a whole range of other currencies.

[VetteG]

I was thinking that if Clinton or Obama got in the change of government (pulling troops from Iraq, boosting jobs at home etc)may have an effect on the economy. I am aware of the weakening pound but I thought that the pound and doller were falling off their perch together?

G

[Timmy33]

VetteG said:

I was thinking that if Clinton or Obama got in the change of government (pulling troops from Iraq, boosting jobs at home etc)may have an effect on the economy. I am aware of the weakening pound but I thought that the pound and doller were falling off their perch together?

G

They are, but IMO the UK economy is fundamentally more screwed than that of the US. Inspite of what Gordon Brown might tell us. So I'm expecting the £ to fall against the $ even as the $ bottoms out against other currencies.