If I am paid US dollars this year – how do I avoid the falling £/$ rate and get more Pounds back to the UK?
This is a very interesting question, my sister had a similar problem she works in Bermuda and thus gets paid in US$ but lives on a permanent basis in the UK
This is the advice i gave her…
The main point is this. if you are planning to live in England in the future and you thus want your money in pounds. Do the following
Put half of your money in pounds and half in dollars, i.e any money saved and also on a monthly basis when you get paid.
By doing this it doesn’t matter if it goes up or down because you will have an equal amount of both!
Ie one currency gains the other losses so you will gain on one and lose on the other but this will equal itself out so you lose or gain nothing!
I’ve done a little bit of chart analysis
The chart shows that the dollar / pound has been in a 4 year trading range
Low = 1.72
High = 1.95
It shows that it has gone up and down and up in a range of 13% in value in the last 4 years
It shows Resistance at 1.95-2.00
If you believe in chart analysis we are at a critical point as we are now at 1.93
Probability wise it should bounce off the 1.95 area back towards the 1.72 area
If it doesn’t and goes up through 1.95 and holds there for more than 3 days. We are then in a new trading range above 2.0 and will likely stay above 2.0 as 1.95 will then be classed as support
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Main point “a”
So the main point is to keep an eye on the exchange rate if it goes above 2.0 and stays there for a minimum of 3 trading days (week days). chart theory says it is in a new upwards range.
You may then want to have another look at your % of money in each currency.
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The problem is as you probably know it could go either way so
If you keep all in pounds and it goes down to 1.72 you will lose out
If you keep all in dollars and it goes to 2.20 you will lose out
Advise on previous mail still stands 50/50 split savings + 50/50 split monthly in wages
Until “a” occurs (if it does)
Source(s):
http://zebra-money.com
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