UK - USA Exchange Rate Forecast

For clients considering our USA investments a regular question is about the exchange rate: "Should I invest now, or wait".

The general answer, if you consider a long period, is easy. Since the second world war the pound has fallen against the US dollar in every 10 year period excepting one (from 2000 - 2010).

So if you consider the past, the time to invest is ALWAYS NOW, because long term we can expect a further decline in the pound.

The benefit of this gradual decline is two-fold. Firstly, the rental income you receive will become more valuable if measured in pounds. Secondly, if you sell your property in the future and repatriate your funds you will have not only an equity profit through higher property prices, but an additional exchange gain!

That's all for the future. The more immediate question is should you invest this week, or next week or next month. Here it is much more difficult to decide. What I can say is that on a monthly basis the exchange variation is rarely more than a few percentage points, so investment decisions and the ability to purchase the property you want are most often more important that trying to second guess the exchange markets. Even the experts get it wrong frequently!

However, we live in interesting times and I thought you'd like to see this chart from one of the most respected foreign exchange companies.

USA exchange rates forecast

Their view is clear. The coming months will see a resurgence of the pound against the dollar, which means (if it happens) that we are in a 'golden' few months for investors in the USA where they could get maybe 5-10% more value by buying now than leaving it for later!

What's your view? Leave a comment below.

Live with Abundance

Rod Thomas

Rod Thomas FCA

Posted in USA Property

3 responses to 'UK - USA Exchange Rate Forecast'

real estate Vietnam

Added 13-May-2010 14:37

Interesting forecast. Does this mean that there's a decreasing trend this year?

Rod Thomas

The view is that the coming months see the strongest rate between the UK and USA, then decreasing towards the end of the year. However, this forecast was before the election and it is possible that the perceptions in the City may change this forecast either for better or worse. It's too soon to know.

Same day loans

Added 31-Aug-2010 13:14

Nice statistics but do really think that this forecast is going to persist.

Paydayin1Hour immediate loans

Added 05-Oct-2010 12:49

Thanks for sharing this valuable information for all those who want to invest in Pound should do it now lest the exchange rates fall more in the coming time.

UK - USA Exchange Rate Forecast

3 responses to 'UK - USA Exchange Rate Forecast'

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