Maricopa Posted November 3, 2009 Share Posted November 3, 2009 This has been puzzling me for a while, and as I was discusiing this the other day with a friend, I though I would post here.There is a long running discussion on here about the "pound being on the brink". Whilst I can understand people discussing events and the possible effects they have on exchange rates, what I have never quite got is why people follow each infinitessimal change in the rate. This is something the vast majority if not all of us on here can do anything about, so why bother about it. I would have thought you would drive yourself mad constantly watching the exchange rate, it is what it is. Before everyone jumps on me about the reduced value of pensions etc, I do genuinely sympathise, but still see little point in paying such detailed attention to the instantaneous exchange rates. Link to comment Share on other sites More sharing options...
Scooby Posted November 3, 2009 Share Posted November 3, 2009 But if you are renovating and transferring money from the UK a small change in the rate can significantly increase (or decrease) the cost. Link to comment Share on other sites More sharing options...
Maricopa Posted November 3, 2009 Author Share Posted November 3, 2009 Surely whether your getting 1.057, or 1.058 doesn't make such a difference that you would hold out in the hope that you might just catch a wave as it were. Link to comment Share on other sites More sharing options...
Dog Posted November 3, 2009 Share Posted November 3, 2009 It's worth being interested in the minute changes - I could point you in the direction of some software that tracks the minute changes and can be programmed to buy and sell huge or small predetermined amounts - you will also need the book that shows how the prices don't really just go up and down they are cyclical. Link to comment Share on other sites More sharing options...
Scooby Posted November 3, 2009 Share Posted November 3, 2009 A movement of just 4 cents would make nearly 600 euros difference on a 14k euro roofing bill - so yes it would. Link to comment Share on other sites More sharing options...
Maricopa Posted November 3, 2009 Author Share Posted November 3, 2009 [quote user="Dog"]I could point you in the direction of some software that tracks the minute changes [/quote]er....no thanks, as I said I am really not bothered. Link to comment Share on other sites More sharing options...
Gastines Posted November 3, 2009 Share Posted November 3, 2009 If you are ,or intend to transfer largish sums either way it can make quite a difference. I did so last week and quite a lot of change occured between the weekend and Friday, making a difference of a few hundred pounds. As usual not to my benefit. The ups and downs are of interest and often a cause of worry to many,I would agree that there is B.all we can do about it. I was hoping Soros might join the Forum and give us a bit of info!! Link to comment Share on other sites More sharing options...
Maricopa Posted November 3, 2009 Author Share Posted November 3, 2009 [quote user="Scooby"]A movement of just 4 cents [/quote]I think you are missing my point. Of course a movement of 4 cents makes a difference, but I am talking about people following and reporting the minutae of changes. Link to comment Share on other sites More sharing options...
Jay Posted November 3, 2009 Share Posted November 3, 2009 Have you seen it tonight 1.1156 Link to comment Share on other sites More sharing options...
Maricopa Posted November 3, 2009 Author Share Posted November 3, 2009 [quote user="Jay"]Have you seen it tonight 1.1156[/quote]QED[:D] Link to comment Share on other sites More sharing options...
Scooby Posted November 3, 2009 Share Posted November 3, 2009 But that isn't a minute change - in the context of my previous example (the 14k roof) today's movement equates to nearly 300 euro. If you can afford to ignore nearly £300 that's great - unfortunately, we can't. Link to comment Share on other sites More sharing options...
Jay Posted November 3, 2009 Share Posted November 3, 2009 [quote user="Maricopa"][quote user="Jay"]Have you seen it tonight 1.1156[/quote]QED[:D][/quote]Surely you mean CQFD as we are in France! Link to comment Share on other sites More sharing options...
Maricopa Posted November 3, 2009 Author Share Posted November 3, 2009 [quote user="Scooby"] If you can afford to ignore nearly £300 [/quote]It's not a question of being able to ignore, more a question of having nothing to take advantage of/ dip out on.Clearly, there are those who need to take notice of these things, guess I'll never really be in a position to get it.[:D] Link to comment Share on other sites More sharing options...
5-element Posted November 4, 2009 Share Posted November 4, 2009 Maricopa, I completely see your point, and it is mine exactly. This highlights perfectly some of the sometimes huge variations in people's financial situations. The bigger your capital and the larger your income, the more attention you might pay to sterling fluctuations. If your income is a pittance (all in sterling), then you just have to be philosophical about the exchange rate fluctuations, tighten your belt a bit further if you can, and just get on with daily life.If I was in a position to pay attention (or ignore) a £300 variable, I might feel differently, who knows![:)] Link to comment Share on other sites More sharing options...
cooperlola Posted November 4, 2009 Share Posted November 4, 2009 What I believe is happening here as that many hope that a minute upturn in the fortunes of sterling will be the beginning of its revival and thus its return to the 1.5-ish most of us enjoyed only two or three years ago. I'm not sure that people are interested in the infinitesimal shifts (unless paying big bills as some of those who have posted here) but they are interested in what these small changes may mean in the future. Link to comment Share on other sites More sharing options...
Sprogster Posted November 4, 2009 Share Posted November 4, 2009 I would have thought that for those living in France who are solely reliant on a low fixed £ pension income and are struggling to make ends meet with the current exchange rate, monitoring the situation for improvement or deterioration could easily become a preoccupation, especially if you are hanging on by your fingertips economically. Link to comment Share on other sites More sharing options...
Celine Posted November 4, 2009 Share Posted November 4, 2009 I think Maricopa is right, it is something we can't do anything about and if we cry for a month it wont change things. We regularly visit our French property, but there's no way we could be bothered to time visits and crossings to coincide with a drop of a few cents here or there. We will continue with our trips regardless: the ups and downs of exchange rates is actually one of things you factor in when buying a property abroad, n'est-ce pas? I can see however that those Sprogster mentioned would be constantly preoccupied with the exchange rate because it greatly affects their lifestyle. I always adopt the attitude easy come, easy go, so when times are hard it must be more difficult and time consuming to juggle your budget. Link to comment Share on other sites More sharing options...
Judith Posted November 4, 2009 Share Posted November 4, 2009 Well I do keep an eye on them, hoping they might stabilise a little (!! - ha, ha!), but I can guarantee that whatever day I find convenient to go to the bank and transfer some money, it will be the day it is the lowest for the week - so no matter what you plan, it's s*d's law!! I transferred money yesterday - today it's gone up ! Link to comment Share on other sites More sharing options...
Stan Streason Posted November 4, 2009 Share Posted November 4, 2009 I tend to top up my French bank account when the rate looks good. My current cost of euros is 1.13 but they are running out and I have about €20k of renovation work to pay for over this winter. Over the course of a week it can easily fluctuate by 0.02 and with a big MPC meeting tomorrow the difference could easily be more significant over the day depending upon more monetary easing or not. For a short period in August I could have got 1.16 and could not better 1.05 at one point last month; over a €2k swing. So yes it does make a difference to me. Link to comment Share on other sites More sharing options...
Graham & Brenda Posted November 4, 2009 Share Posted November 4, 2009 Tomorrow should be interesting for rate watchers as the Bof E will be saying whether or not it will be extending its quantitative easing programme. Link to comment Share on other sites More sharing options...
JohnM Posted November 5, 2009 Share Posted November 5, 2009 I have to disagree with your signature tag Maricopa. Virtually everything that any of us do is based on assumption. We go to work on the asumption that we will get paid. We eat food on the assumption that it will not poison us. We watch sport on the assumption that we will enjoy it. Our assumptions are right far more often than they are wrong. The bloke (male or female) who first said that popular (but inaccurate) saying, must have been very out of touch with reality. Link to comment Share on other sites More sharing options...
mint Posted November 5, 2009 Share Posted November 5, 2009 Good news of a sort, I suppose?http://www.hifx.co.uk/marketwatch/market_news/headlines/uk_boe_sit_tight_for_novembers_key_decision.aspx Link to comment Share on other sites More sharing options...
DerekJ Posted November 5, 2009 Share Posted November 5, 2009 Oh well... the printing presses are rolling again... just an additional £25 Billion this time. Link to comment Share on other sites More sharing options...
Jay Posted November 5, 2009 Share Posted November 5, 2009 [quote user="sweet 17"]Good news of a sort, I suppose?http://www.hifx.co.uk/marketwatch/market_news/headlines/uk_boe_sit_tight_for_novembers_key_decision.aspx[/quote]That was last months news! Link to comment Share on other sites More sharing options...
mint Posted November 6, 2009 Share Posted November 6, 2009 Oops, apologies............I guess I was just looking too hard for some good news. Still, rate's a bit up at the moment? Link to comment Share on other sites More sharing options...
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