[Greenday]

Wow, just looked on http://www.ozforex.com.au and the £ pound has dropped masively againt the NZ dollar. Does any one know if this trend is likely to continue, or should i hold tight before we change our £'s to $'s?

Also, when in NZ we got a better exchange rate as the banks were buying pounds, but if we changed them in the UK we were buying dollars. So is it better to change most of our money out there? Cheers

[diforsyth]

The Kiwi dollar is getting stronger against the Pound because of the US dollar. Although it staying between $2.80 & $2.90 at the moment, the biggest significant impact will be whether the NZ interest rate is increased - if it does the Kiwi dollar will strengthen and the exchange will head towards $2.70 or perhaps lower.

Speculation is that the Pound will strengthen again next year but repeat that's only speculation.

My personal advise is not to think too much about the exchange rate unless you truly understand the FX market. You can end up stir crazy thinking about what you have lost or could have made if you only just did xyz...

Convert your money at the time you want it, then see what you have and take it from there. Life's too short.

[Greenday]

thanks for the great advice.

[Charlosparky]

Did the wiring of a new helicopter hanger for a local crop spraying firm last week, and was chatting to the (multi millionare) owner/operater. He makes more each year from FX dealing than spraying, and said that a big payment is due by NZ at the end of october that will weaken the NZdollar against the USdollar (something to do with government loans that went over my head), and another is due at xmas.

He advised me to hold my £ss until then, when it should reach $3 -£1 then exchange, as the NZ goverment will use that as a benchmark to stabilise the NZ$ so it will fall back to $2.60-$2.80 next spring.

One of his staff told me that he made enough money in dealing last year to buy his latest (4th) helicopter brand new- so he is obviously knowlegable or lucky!

[Greenday]

Charlosparky, that a great inside tip! cheers.

[StevieD]

Charlo, all you need is a bit of cash behind you to start with and off you go.... buy low, sell high, easy as that, as long as you patient :) Just wish I could do it!!
And thanks for that tip :)


Steve

[markynz]

has anyone ever noticed the trends over the last 5-10 years, whereby the rates tend to fluctuate between whose summer it is ? Its not exact, but its intriguing.
basically, the NZ dollar seems to favour NZ in their summer and the UK pound tends to be strong in their summer.
I studied it on a currency site a while back. I'll see if I can find it if anyones interested.

[diforsyth]

Interesting that you mention trends in relation to FX and it reminded me of comment from a Russian colleague in relation to house prices. He found that approximately 2 years after the government announced increases in immigrant quotas there was an unusually high increase in house prices.

[willsken]

I studied it on a currency site a while back. I'll see if I can find it if anyones interested.

Taken me a long time to find this! I'm interested! :p