Is now the time to buy?
Now is the time to buy!
USD moves higher against the pound.
Just as I was talking about where to keep your rental profits only two days ago! It seems the dollar has rallied and done us a favour.
Larry Elliot, Guardian.
“The pound fell to its lowest level against the US currency in almost two years on expectations that the Bank of England will be forced to cut the cost of borrowing to boost growth. A pick-up in
US industrial production also helped a resurgent dollar and pushed down the price of oil and gold on global commodity markets.
The pound closed at $1.85 on the foreign exchanges. It is down 6.5% since July, a move that will make it more expensive for British holidaymakers to visit the United States but will make UK exports cheaper to the world’s biggest market.
Michael Saunders at Citigroup said: “Sterling remains vulnerable, especially against the US dollar. The pound averaged $1.55/£ over 1993-2002 and it would not be a surprise to see a return to those
levels in the next 12-18 months.”
So what does this mean for us? Well, it seems that now is a great time to buy. There is a period of strengthening for the dollar and who knows how long this will take, but one things for sure, its
better to have your money in dollars than in pounds regardless of how you do it!