With the U.S. election looming many expats are wondering: is this the right time to move my money? UKForex looks at the lessons learned from Brexit to help you make wise choices in the lead up to the U.S. election.
Just like the U.K. referendum on whether or not to stay in the E.U., the U.S. election is an intensely polarised offering. Even the most accurate polls cannot predict who will show up to vote on November 8th. If one group dominates in terms of turnout, the US dollar may experience a volatile shift–just as the pound did.
The biggest winners post-Brexit were expats and overseas investors who were ready to cash in on the pound’s decline by buying property in London. Indeed, house prices in London swelled 12.3% in July to accommodate demand from overseas investors.1 (That’s still a bargain considering the pound has been down 20-30% against various currencies.)
From a high of 1.30 against the euro, the pound now sits at €1.12. Importers and exporters in Europe have profited from British products at up to 20% off the usual rate. For British online sellers using Amazon, eBay, and Etsy to sell their products abroad, they’ve been able to offset losses by tapping into foreign markets.
If you have a big international purchase coming up, like a destination wedding, consider your options carefully. How the election will affect your payment will depend on the currency you’re trying to exchange. If you’re worried about your money losing value, you can lock in an exchange rate with UKForex to help protect your bottom line.
If you sell products on global marketplaces like Amazon, using UKForex to process your cross-border payments means you can choose when to bring your money home, which could mean the difference between profit and loss on your overseas operations. You can also use our risk management tools to keep your cash flow predictable.
Keep in mind that UKForex saw 2.5 times our usual trading volume on June 23-24, 2016 (the date of the Brexit vote) as expats buying and selling pounds scrambled to move their money. We’ll be live tweeting on the day, so you’ll know which way others are moving their money, which may help you make an informed decision. Follow us on Twitter @UKForex_Oz so you can be the winner of the U.S. election.
This communication has been prepared by sales personnel of UKForex or its affiliates. Sales personnel are not research analysts and are not accredited, licensed or otherwise qualified to provide advice on market conditions. This commentary is intended for informational purposes only and does not constitute substantive “research” as that term is defined by applicable regulations. Any opinions, views or analysis expressed herein are subject to change without notice and may differ or be contrary to the opinions of other UKForex personnel. UKForex is an online foreign currency exchange money transfer service and does not offer any form of margin or speculative trading facilities; and neither it nor its employees are in the business of providing, and do not provide advice to consumers or investors. The information contained herein does not take into account the financial situation or objectives of any particular person and should not be construed as business or investment advice or investment recommendations. Recipients of this communication should exercise independent judgment and obtain advice from their legal, tax or financial advisors. The information set forth in this document has been obtained from third party sources that are believed to be reliable, but its accuracy and completeness cannot be assured, and such data may be incomplete or condensed and in fact provide only a limited view of a particular market. Consequently, any person acting on the analysis, opinions or views expressed herein, does so at his or her own risk. UKForex and its affiliates will not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on information contained in or derived from this communication.
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