US Dollar may have just started to turn

This is a quick notice to let you know that the US Dollar has just started to turn in value against other major currencies. Time for action, if you are looking to buy Dollars at some point soon.

If you have USD, this could be the time to sell dollars and buy into GBP, Pounds Sterling, or Euros.

GBP: USD. In May 2010, the USD was worth $1.43 to £1. It was trading this morning a £1.5970 to £1.

However, the Dollar has started strengthen. It has gained about 2 cents in a day. Good time to buy dollars? Likely!

Here is a chart showing the recent performance of the Pound against the dollar.  

.

EUR:USD. In december 2009 you could buy €1.50 for every $1. during 2010, the EUR strenghened against the Dollar to around €1.21 to every $1. Recently, the dollar has strenghened against the euro to around €1.32 to $1.

Today, it looks like the dollar is strengthening after a sustained period of losses. Here is a chart demonstrating the recent downturn in value of the dollar against the euro. What has happened today, is an about-turn, and the dollar is strenghening.

The main message?

• If you have a large amount of Dollars… do something! If you want to buy your currency ahead of time, you can. With just a 10% deposit, you can fix the usd rate now, and pay the balance at a fixed point in future but keeping the current rate.
• If you want to buy, or sell, Dollars, talk to one of our currency dealers and they will set a rate at which they will contact you so that you can buy your Dollars at the best price possible.

The easiest way to look at this is; if you need to change your money at some point and you need to achieve a certain amount, then you have these options:

1. Exchange all of your Dollars at today’s rate. This is called a SPOT Contract. It ensures that you fix the rate today and you get your money transferred, to where it needs to be, in good time.
2. Exchange some of your Dollars and risk the exchange rates going in your favour by the time you need to have the rest of the money changed. This is HEDGING in its simplest form. It does mean you can sleep at night, safe in the knowledge that you’ve made sure you don’t lose too much if the rates don’t go your way.
3. Exchange your Dollars, at today’s exchange rate, with just 10% deposit. Then pay the balance when you need the money in the future. This is called a FORWARD Contract. This is the way that most of my clients are now exchanging their money. By paying just a 10% deposit, our clients can relax, safe in the knowledge that they have the right amount of money for their property purchase.

Of course, this doesn’t just apply to Dollars. It applies to any tradeable currencies.

If you have any questions on exchanging your currency, please call 0044 (0)1480 474517 or email me here

Money Transfer to Canada

Money Transfer from the UK to Canada

There are many ways to transfer your money from the UK to Canada. In the past, most people have called their own bank and asked them to change their GB Pounds to Canadian Dollars. Currently, there are so many more cost effective ways to do this.

If you choose to use your bank, it’s likely that they will not necessarily:

1. Grant you the best rate of exchange available at that moment
2. They are likely to charge you a commission
3. They will almost definitely charge a fee for making the money transfer to Canada

If you knew about a way to save on each of the 3 areas, it’s likely you would use it, especially, as the foreign exchange specialists are usually faster than the high street banks as it’s all they do!

Some Expats, or second home buyers, in Canada simply open an account with HSBC as they allow the client to have accounts in Canadian Dollars and GB Pounds.

• The advantage of doing this is you have flexibility to move the money between your accounts when the currency exchange rate suits you.
• The disadvantages are that HSBC don’t have as many branches as Canada’s own local main banks in the cities. And, you are unlikely to get a great rate of exchange each time you switch between accounts.

Foreign exchange specialists, like fx-foreignexchange.com are now the more likely route for a second property buyer, or expat, to use for larger currency transfers from the UK to Canada. They already have an account with HSBC in Canada and the UK.

The advantages of using FX-Foreignexchange to exchange your £’s to Canadian Dollars are:

• The service is safe and swift.
• They generally offer a better rate of exchange (Saving thousands on larger transactions).
• They don’t charge a commission.
• They don’t charge a fee to transfer the money.
• You can also set a rate of exchange that you are prepared to deal at, and FX-Foreignexchange will contact you when the currencies meet that figure so you can buy at the best rate of exchange.

The disadvantage, when compared to a high street bank, is difficult to see as there doesn’t appear to be one!

If you are looking to exchange GB Pounds into Canadian Dollars, call FX-Foreignexchange on +44 (0)1480 458400 for a quote, or simply ask for an explanation on how to save money when transferring abroad.

Or go to the fx-foreignexchange site