New hope for British expats in the USA as Pound strengthens

Changes in foreign exchange rates are bringing good news for those considering a move across the Atlantic. The changing value of the US Dollar is significantly reducing the cost of moving to the US with the Pound rising above US$1.60 last week, an increase from US$1.43 in April this year.

Research by Foreign Currency Direct, a specialist foreign currency broker, compares how exchange rate fluctuations have impacted the cost of essential and non-essential purchases common to a British expat living in the US. The results show that Britons currently living in the US on British savings or pensions have experienced significant drops in prices in the last two months.

The cost of a basket of essential groceries such as eggs, milk and bread costing US$7.07 now costs 53p less than it did in April 2009 (£4.42 compared with £4.94).

The average property in the US (US$291,800) now costs £21,680.94 less than it did two month ago (£182,375 compared with £204,055.94).

The value of the US Dollar has changed dramatically over the last 2 years. In November 2007 the Pound reached a record high against the US Dollar, rising above US$2.00. The cost of living as an expat in the US in March 2009, however, was 34 per cent more expensive than in November 2007, with the Pound dropping to US$1.38.

In March 2009 Britons considering a move to the USA came in for a shock. With the US Dollar gaining almost 40 per cent against the Pound in the previous two years, a British buyer paid almost £58,828 more for the average property in the US, and £679.82 more for a ‘basket' of 41 purchases common to a British person living overseas including essential groceries, services, meals out and leisure activities. Until recently, the Pound's poor performance against the US Dollar meant that the cost of living in the US had increased more than in any other popular British expat destination; however it now seems prices are starting to fall.

Peter S. Ellis, Chief Executive of Foreign Currency Direct commented, "In the last two months we have seen the Pound strengthen significantly - good news for both holiday makers and those planning to emigrate. British expats considering a move to the US ought to consider, not only current changes in exchange rates, but also any likely future changes which will affect their cost of living."

"At Foreign Currency Direct we help our clients to secure the best possible exchange rates for immediate or future transactions, which can be up to two years in advance with our ‘forward contract' - this makes moving overseas far less stressful and ensures people make the most of their money."