For those of us heading to the United Kingdom, the USD is gaining on the GBP every day. From the time we booked our plane tickets last October until two months ago, it looked like the unfavorable exchange rate would not stop going against us. In the last month our trip cost has dropped by hundreds of dollars thanks to the Scotland Referendum vote.
Posted by
Sacramento, California U.S.A.
10866 posts
Good timing for us!!
Posted by
Lakewood, Colorado
19407 posts
I don't know if it's really the Scotish referendum. Right now the British pound is worth a little more vs the euro than it was 90 days ago. The increase in the dollar vs the pound seems to be more a strengthening of the dollar vs world currencies.
Posted by
shalimar
74 posts
We are going soon also. . . if the Scots opt out I am rushing to the bank to order pounds for our trip. Normally I just get cash from the ATM's but this could greatly increase our spending power! I may call and prepay our hotel too! :)
Posted by
Oak Park, Illinois
4535 posts
I don't know if it's really the Scotish referendum. Right now the British pound is worth a little more vs the euro than it was 90 days ago. The increase in the dollar vs the pound seems to be more a strengthening of the dollar vs world currencies.
It might have a little to do with a strengthening dollar (which has also gained vs the euro) but it's mostly market uncertainty over the vote. The pound started dropping hard with the recent poll suggesting "yes" is now leading. It's also been more volatile lately.
Enjoy it while it lasts.
Posted by
Oak Park, Illinois
4535 posts
We are going soon also. . . if the Scots opt out I am rushing to the bank to order pounds for our trip.
A warning to those that might try and play the currency markets: unless you are a currency speculator, it's best to just go along normally. You have no way of knowing how the markets will react to certain events and while a poll suggests a slight lead for "yes," there is no way to know how the vote will go or what might happen after.
Another thing to consider is the cost of buying pounds now. Most banks charge 5-10% for buying currency. That means the dollar has to continue to rise at least that much for you not to lose money. For example, if you buy now at a cost of 10% and the dollar rises 5%, you lose 5%. If the pound rises 5% before your trip, you lost 15%. You only win if the dollar rises more than 10% - a rare change in a short term.
Posted by
Tel Aviv
15806 posts
Now I'm wondering if I should run and out and get lots of €€'s for my February trip. Thanks for bringing this up, I hadn't noticed, but I'm going to watch the rates now. If the euro drops below $1.25. . . . .