Euro ? up or down!

[TravelMike]

I need to purchase some euros, based on the news from Greece and Spain I am wondering if I should hold off awhile. I don't see it dropping to much but all the indicators say it should go lower. Any ideas, or suggestions. Mike

[Marc]

I get paid in US Dollars but live in Belgium so I track Euro closely. Unless you are switching thousands of dollars, any change is not going to matter too much. If you are thinking of buying Euros in US before coming to Europe, you will lose much more than if you just waited to arrive in Europe and go to ATM machine.

As to your question, there are predictions of the Euro falling to $1.30. Maybe it will get there and maybe it will go even lower. However, it could swing back the other way quickly if US budget deficit starts looking worse or if EU Central Bank hints at raising interest rates. In other words, I wouldn't sweat this decision.

Marc

[Snoozeman]

Magic Ball says........lower

I predict lower than 1.30 Marc.

[Marc]

Originally Posted by Snoozeman

Magic Ball says........lower

I predict lower than 1.30 Marc.

Well, it got to 1.25 last year in a flight to "quality." Assuming the Euro still exists in a year or two, it won't be any lower than that. Of course, if Germany pulls out of the Euro, the Euro will be back down to par with the dollar while the Deutschmark will be the strong currency.

Still, I wouldn't bet money one way or the other right now.

[Marc]

Snoozeman, I found this great article:

The Mother of All Bubbles: Huge National Debts Could Push Euro Zone into Bankruptcy - SPIEGEL ONLINE - News - International

Who knows, we may see parity of the USD and Deutschmark, I mean Euro, yet.

[TravelMike]

Originally Posted by Snoozeman

Magic Ball says........lower

I predict lower than 1.30 Marc.

Snooze, I would not even ask but I want to purchase about three thousand euros for our trip to the med in October. More bang for the buck doesn't hurt. Thanks, Mike

[Kuki]

Originally Posted by TravelMike

Snooze, I would not even ask but I want to purchase about three thousand euros for our trip to the med in October. More bang for the buck doesn't hurt. Thanks, Mike

I'm no expert (though I did stay at a Holiday Inn last night), but my guess is the US dollar is going recover more against the Euro. I'm off to Venice in July for the inaug of the Niew Amsterdam, for just a few days, so won't need as much as you, but I'm holding off.

Plus, since the Canadian dollar got to par week before last, I bought a fair bit of US, thinking it's going to gain against our currency as well. I do think there's some good indicators about a recovery in the US.

[Marc]

Originally Posted by TravelMike

Snooze, I would not even ask but I want to purchase about three thousand euros for our trip to the med in October. More bang for the buck doesn't hurt. Thanks, Mike

Just hit the ATM when you arrive.

[Snoozeman]

Mike

ATM's are good and Capital One doesn't charge a fee!! But I usually go inside the bank and look for exchange window. Sometime they have a greeter at the door and they can show you were to go.

I did get some from my bank b4 just to have some in my pocket, but it is cheaper to get them over there.

Thanks Marc & Kuki. BTW--Market is killing me today.

Ray

[TravelMike]

Originally Posted by Kuki

I'm no expert (though I did stay at a Holiday Inn last night), but my guess is the US dollar is going recover more against the Euro. I'm off to Venice in July for the inaug of the Niew Amsterdam, for just a few days, so won't need as much as you, but I'm holding off.

Plus, since the Canadian dollar got to par week before last, I bought a fair bit of US, thinking it's going to gain against our currency as well. I do think there's some good indicators about a recovery in the US.

Kuki, I would not need so much but we are going on several private tours and they are requesting euros, not credit cards. It was a major success in St. Petersburg. Thanks again. Mike

[Marc]

Originally Posted by TravelMike

Kuki, I would not need so much but we are going on several private tours and they are requesting euros, not credit cards. It was a major success in St. Petersburg. Thanks again. Mike

I have four days in Moscow later this month. Red October originally quoted in USD; I asked for quote in Euros given that I don't have access to US currency. I am sure glad I did. By the time I pay the 1628 Euros, it will be worth fewer USD than at time of booking.

My ATM card only allows me $500 per day. For a year, I have been going to bank around three times a week getting Euros. I should have all the money for Moscow by this Friday and will then start getting money for rest of month.

[DayvidB]

With the current rates I have never seen a better time to bring your dollars into Europe

[TravelMike]

Originally Posted by Marc

I have four days in Moscow later this month. Red October originally quoted in USD; I asked for quote in Euros given that I don't have access to US currency. I am sure glad I did. By the time I pay the 1628 Euros, it will be worth fewer USD than at time of booking.

My ATM card only allows me $500 per day. For a year, I have been going to bank around three times a week getting Euros. I should have all the money for Moscow by this Friday and will then start getting money for rest of month.

Marc, we used Red October last June, they did a wonderful job. They changed there policy from small groups to individual couples. From what I was told they had to many problems with people in larger groups agreeing on what to see, and only moving as fast as the slowest person group member. Sounds like a ship tour. We had a driver and guide for two days. Well worth the money, and they took a credit card which made it easy, I tipped in cash. They do like the American dollars. Take care, Mike

[Marc]

Originally Posted by Marc

Well, it got to 1.25 last year in a flight to "quality." Assuming the Euro still exists in a year or two, it won't be any lower than that. Of course, if Germany pulls out of the Euro, the Euro will be back down to par with the dollar while the Deutschmark will be the strong currency.

Still, I wouldn't bet money one way or the other right now.

To be proven so wrong so quickly.

At least when I pay my 32,000 Euro tax bill this summer I won't have to fork over as many US Dollars as I had anticipated.

[AF1]

Boy is the Euro dropping fast; of course so is our stock market

[Marc]

Originally Posted by AF1

Boy is the Euro dropping fast; of course so is our stock market

And it is rising just as fast!

Euro was down to 121.44 at it's low on Wednesday. Currently, it is at 126.43. Who knows where it will be at the end of the day.

I am still hoping for a continued decline in the Euro; hopefully under 1.20.

[Paul Motter]

It ended around $1.24 on Friday, but next week could be just as wild.

OH - but I would also wait to buy them in Europe - well, just go to an ATM, don't "buy" them at an exchange place. If you feel you really need them only buy the minimum you will need before you can get to an ATM. Most airports have ATMs and they almost ALL use US banking systems like Cirrus, Star, and other ATM networks.

[Snoozeman]

STOCK market driving me nuts--Goats driving me nuts--Politicians driving me nuts! TGIF

I need a cruise!

[Kuki]

Originally Posted by Snoozeman

STOCK market driving me nuts--Goats driving me nuts--Politicians driving me nuts! TGIF

I need a cruise!

Send the goats to Washington, bring the politicians to Texas to graze. Problem fixed

[Snoozeman]

Originally Posted by Kuki

Send the goats to Washington, bring the politicians to Texas to graze. Problem fixed

Works for me.

I have a feeling there will be a bunch of 'old goats' from Washington DC who will be 'put out to pasture' come November.!!

[CrystalPrincess]

Can somebody explain to me in simple English how the euro can be falling if it is worth the same amount when converted from a dollar? When you convert dollars to euros the number of cents is still what it would have been when the European Union invented new currency. So I cannot understand what people mean when they say the economic crap in Greece is making the euro worth less than it used to be.

[Paul Motter]

Can somebody explain to me in simple English how the euro can be falling if it is worth the same amount when converted from a dollar? When you convert dollars to euros the number of cents is still what it would have been when the European Union invented new currency. So I cannot understand what people mean when they say the economic crap in Greece is making the euro worth less than it used to be.

Actually - Euros are not worth the same as dollars, they are worth more right now and have been since the early 2000s. Right now you have to pay about $1.20 to buy one Euro, but a few months ago it was more like $1.30.

This is typical foreign exchange - there is nothing new about it. The Euro is cheaper now which means our dollar buys more in Europe now than it did last year ($1.45). It really does make a difference.

[ready2gonow]

Originally Posted by Kuki

Send the goats to Washington, bring the politicians to Texas to graze. Problem fixed

(Somehow, I missed this gem, during my travels)

Kuki, what have you got against all us Texans! I prefer the goats!

[Trackypup]

Crystal Princess:

HowStuffWorks "How Exchange Rates Work"

Try this article on how exchange rates work.