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Trading only USD stock on ISA account. Need clarification on currency conversion
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tuquoge5401,
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US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy. The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish? Apr 28, 2022 | DailyFX Nick Cawley, Strategist
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Question
tuquoge5401
Can someone help clarify my understanding on the currency conversion?
Background
1. I have share dealing account and ISA share account.
2. Completely new accounts created this month.
3. I intend to trade only the US stock for now.
Questions I have
1. I made a transfer with USD to my account, referencing my ISA account id. But the money is transferred to the share dealing account, not ISA account. Is this expected? (but this probably doesn't matter as I can easily move money between 2 accounts)
2. The money is auto-converted to GBP. From my research, it seems impossible to set a base currency to USD for these 2 types of accounts. So is it correct that I cannot avoid such auto-conversion?
3. If I move GBP money to ISA account, then buy a US stock. When I sell the US stock, will I get back the money in GBP or USD? i.e. If I buy a US stock, then sell, then buy again. How many conversions will it happen?
Thank you very much for answering!
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