Silly dollar's monthly cycle

Apr 03, 2008 08:28

Is it just me, or does the US dollar seem to sink close to or below parity during the first week of every month ( Read more... )

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queerasmoi April 3 2008, 21:34:27 UTC
Yes, I looked at the Yahoo Finance charts. The pattern holds for most - but not all - of the months since September. If I add the restriction that the rate chosen before the end of the month is at least above par, the pattern becomes even better.

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salanth April 3 2008, 21:59:00 UTC
Excellent, sounds like it's worth a try then.

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high_risk April 9 2008, 02:22:03 UTC
Not sure if this helps (and it is late), but the Govt puts out some pretty fat checks in the first of the month...ie the military is paid on the first/feds are paid on the firs, some of the states that only pay their employees once a month get paid, and most of the counties and cities pay the last day of the month and the 15th.

Not sure on how that plays into your scheme...

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queerasmoi April 9 2008, 04:26:37 UTC
It could play into it, but usually the change in a currency's direction would be more influenced by trading volume... it's my guess that domestic earnings aren't often transferred to another currency upon receipt.

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brothercarl May 25 2008, 12:32:47 UTC
Might I ask what trading site you are using?

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queerasmoi May 25 2008, 17:24:38 UTC
The site is XE.com (XETrade), which is the same as the forex brokerage Custom House. You can register any US and Canadian accounts you want with them, in either currency. It takes a bit of setup time and some paperwork, but once you are registered, you can carry out cross-border transfers at decent, predictable exchange rates, using EFT. It takes about a week for money to land in the target account.

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brothercarl May 26 2008, 14:49:19 UTC
Thanks! This looks like what I'd been wanting, an easy way to move money back and forth between my accounts in the U.S. and my accounts here. Hopefully it gives as good as or better rates than my bank gives me.

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queerasmoi May 26 2008, 14:59:15 UTC
I set up with a trade limit of $5000 and there is about a 2.9% spread between buy and sell. Possibly slimmer if you will be trading larger sums. There are otherwise no transfer fees at all. You can also place bids and hope they will be filled at your price; and you can place 30-day or 1-year forwards to commit to future exchanges at today's price.

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