Anyone thinking of buying pound sterling right now, either as an investment or to get a discount on a future trip to the UK? Rates seem low low low. Do you think it's a good idea this week to drop a few k on some pounds, given the CAD has dipped a bit too this week?
Pound Sterling
- Thread starter CapitalGuy
- Start date
Sterling is at some exceptionally low levels and is likely to weaken further in the coming days and weeks but until we get concrete news on the new Tory leader and the process of leaving the EU is physically triggered the rates might not have any days similar to last Friday. It is the best time in two years to sell euros for pounds and the best time in 30 years to sell dollars for pounds. Don't make a big buy, add slowly. Look for it to slide further but the massive hit has occurred. G/L
I exchanged some that I had left from my last trip the day after it started crashing. It was 178 cad to 100 gbp ( I got 171 at my bank) and today it's 172 cad for 100 gbp....last week it was 188 :/
Much better places to buy and sell other than a bank. Banks usually give terrible rates.
I wouldn't buy pound sterlings now for investment purposes. I would look at solid companies that have dropped a lot in share price since the Brexit results, and invest there after waiting a littler longer.
Only reason I'd convert money is if I were going on a trip.
Only reason I'd convert money is if I were going on a trip.
Where would you recommend?
I don't currently have much other current currencies except americans and some long lost japanese yen, but I always had better exchange at banks than exchange counter.
I have been using Calforex on Queen St. W. I find their rates are better than the banks and other downtown exchanges. Hope this helps.
There are many foreign exchange places in Toronto, just google it and a whole whack of different ones will come up. You can compare rates online but usually you can find several that offer better rates than a bank. Two worst places to exchange currency is at hotels and airports.
My bet is that the GBP will bottom out in about a year or two when reality about Brexit sets in, then slowly creeps back up. I will wait a bit.
If your interested in a long term short,otherwise the pound could end up below the Euro.
Don't kid yourself. They have left the slow growth Europe. They are now among the strongest growing nations of the G7. This chart puts the recent fall in context.
http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=10Y
There are speculations that the UK and China are going to forge economic ties to reverse the tide for both countries. https://www.yzzk.com/cfm/content_archive.cfm?id=1467258059016&docissue=2016-27
I wanted to read that but it's in Chinese.
Not sure how close the Chinese want to get with the UK, they have long memories and the Opium Wars still resonate. China has forged strong economic ties with Italy, a nation with no history of European exploitation. Chinese consortiums already own Pirelli and both Milano soccer clubs. The UK should have stuck with "slow growth" Europe.
The Chinese do have investments in the UK but mostly in fossil industries like nuclear power. But Prime Minister may is putting the brakes on the deal.
Not sure how close the Chinese want to get with the UK, they have long memories and the Opium Wars still resonate. China has forged strong economic ties with Italy, a nation with no history of European exploitation. Chinese consortiums already own Pirelli and both Milano soccer clubs. The UK should have stuck with "slow growth" Europe.
The Chinese do have investments in the UK but mostly in fossil industries like nuclear power. But Prime Minister may is putting the brakes on the deal.
Banks aren't much better --- but as earlier stated, there are not bad places to buy/sell currency. American gets the best rates, apparently, because of volume, but say if you were to buy/sell pounds, the spreads are a bit worse but still not nearly as bad as the banks. Bendix on Bay Street has online chat to get rates. Generally the more you have to buy/sell in cash (say, plus 1,000 in whatever currency) gets you better than if you want to buy or sell just a few hundred. Like any institution, however, under FINTRAC rules, more questions will be asked if you are doing major cash transactions or really regular transactions.
