Aud/gbp

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/8317879.stm

The pound has rallied after the Bank of England said its monetary policy committee voted 9-0 earlier this month not to pump more cash into the economy.

The pound was up 1.8% against the dollar at $1.6630, and up 1.1% against the euro at 1.1087 euros.


This is good news. Makes gold cheaper to buy.

Boomed.

Only a matter of time before they realise they need to print more money and the pound tanks again, and realise a nice profit on selling up.

[JoJoGabor]

[QUOTE=aussielong;970389]Maybe I should steer clear of property in the UK and just do a term depo?

I think the exchange rate will eventually come back as the UK interest rates will go up when inflation kicks in, and that will draw investers in and drive up the currency.
QUOTE]


I was reading a report this morning that they dont expect the interest rate to rise above 2% before 2014. What with continued QE, the pound is widely expected to fall, drastically in the next 12 months.

Stay clear. Keep your dollars. I've just bought a load of US dollars, but in hindsight think I should have bought gold or an Far Eastern currency instead, seeing the US dollar is also falling.

[swamp]

Well London property is very overpriced. And by 'overpriced' I simply mean it is cheaper to rent than buy, even with the low interest rates we have. The gross yield (annual rent / purchase price) will still vary by area and sector, but things still favour the renter in London IMO.

To give an example, I rent at 3%.

[SantaClaus]

Please explain the flaws in my plan?

Please explain the part that isnt flawed

I wouldnt want to be short aussie anytime soon, especially as it follows gold.

[aussielong]

1. Appreciation of GBP against AUD, or rather the more likely opposite.
2. Capital gain in property in UK, or the lack of it.
3. Hector wanting his cut.

AUD is a commodity currency that has the prospect of doing very well in any economic recovery which many think would have that region at it's core. If I was holding AUD in any size I'd be looking to invest it there.

Maybe I should steer clear of property in the UK and just do a term depo?

It's hard to make money here in Oz. Property is overpriced and not doing much. Tax is high.

The currency has moved so far, it's very tempting to jump in. Especially as that is tax free profit. I think the exchange rate will eventually come back as the UK interest rates will go up when inflation kicks in, and that will draw investers in and drive up the currency.

If this didn't happen I could just unwind my trade and admit defeat in a couple of years. The loss would be somewhat offset by the gain on the term depo.

Seriously seeking input here - never done anything like this before ...

[HairyArsedBloke]

Please explain the flaws in my plan?

1. Appreciation of GBP against AUD, or rather the more likely opposite.
2. Capital gain in property in UK, or the lack of it.
3. Hector wanting his cut.

AUD is a commodity currency that has the prospect of doing very well in any economic recovery which many think would have that region at it's core. If I was holding AUD in any size I'd be looking to invest it there.

[sasguru]

Australia will reap the benefits of it`s rational immigration policy while this country disintegrates under a flood of illiterate African refugees.

Ironic

[dinker]

Australia will reap the benefits of it`s rational immigration policy while this country disintegrates under a flood of illiterate African refugees.

[aussielong]

R U Fraking

Please explain the flaws in my plan?

[HairyArsedBloke]

I've got some aussie that I want to put into pounds, to realise a gain on the exchange rate movement since I bought aussie.

When I am holding pounds I am thinking of buying a London BTL and holding that for a few years until the pound comes back and I can ditch the flat and buy aussie again.

Is there a better plan for investing the pounds that can beat the inflation from quant easing and give me a decent return while I wait for the pound to bounce back?

R U Fraking

[aussielong]

Pound will bounce back eventually won't it??

If the tories get in, and once the city gets back on its feet.

[DimPrawn]

The pound is going to bounce back? That would assume we're not forked and Brown is a genius no?

[aussielong]

I've got some aussie that I want to put into pounds, to realise a gain on the exchange rate movement since I bought aussie.

When I am holding pounds I am thinking of buying a London BTL and holding that for a few years until the pound comes back and I can ditch the flat and buy aussie again.

Is there a better plan for investing the pounds that can beat the inflation from quant easing and give me a decent return while I wait for the pound to bounce back?