This is the Last Place in the Universe for Financial Advice ... BUT ... this doesn't take a computer and a Wall Street analyst.
A year ago, the euro traded for about $1.35. Today, the euro trades for about $1.13. The chance of the euro bouncing back up again between now and Summer is probably not high but that is the financial analyst stuff when you try to predict the Future. I can't possibly know and wouldn't try to predict. What I say now is from simple arithmetic: you would have paid 20% more for a euro a year ago.
So.
Maybe if you were not planning on a Euro trip this season, it might not be such a bad idea as it's, in effect, 'on sale' right now.
Where you need to play currency trader is if you decide to buy some euros now. There's a limit to how much cash you can take out of the country but if you're a big spender then maybe it's not such a bad idea to set up an account in a Euro bank and transfer money that way. Either approach is legal, the question is whether it's advantageous at this time.
Note: this does not apply to trading for pounds as they're more expensive than euros. If you're hungry for Yorkshire puddin' then you need to be ready for that. As of this writing, the British pound is trading higher than it was a year ago. You might want to skip Stonehenge on this tour and go straight for the Continent. If it were me, I'd be heading for Germany ... but the airlines don't allow hitchhikers.
A year ago, the euro traded for about $1.35. Today, the euro trades for about $1.13. The chance of the euro bouncing back up again between now and Summer is probably not high but that is the financial analyst stuff when you try to predict the Future. I can't possibly know and wouldn't try to predict. What I say now is from simple arithmetic: you would have paid 20% more for a euro a year ago.
So.
Maybe if you were not planning on a Euro trip this season, it might not be such a bad idea as it's, in effect, 'on sale' right now.
Where you need to play currency trader is if you decide to buy some euros now. There's a limit to how much cash you can take out of the country but if you're a big spender then maybe it's not such a bad idea to set up an account in a Euro bank and transfer money that way. Either approach is legal, the question is whether it's advantageous at this time.
Note: this does not apply to trading for pounds as they're more expensive than euros. If you're hungry for Yorkshire puddin' then you need to be ready for that. As of this writing, the British pound is trading higher than it was a year ago. You might want to skip Stonehenge on this tour and go straight for the Continent. If it were me, I'd be heading for Germany ... but the airlines don't allow hitchhikers.
2 comments:
I posted essentially the same thing in my blog on 1/16. Great exchange rates - and with the ECB imposing QE, now, it's only going to get better - plus lower-priced airline tickets means great European travel opportunities.
One note on exchanging currency, though, is I typically take only what is needed for out-of-pocket cash. Everything else I put on a credit card. The exchange rate on the card, even with a foreign currency surcharge, is typically better than what you will get at a currency exchange booth.
I listed your blog in the sidebar as I know you take these financial analyses extremely seriously.
Anyone with an interest in stock market activity as to reading it, analyzing patterns, etc may be interested in the financial articles Kannafoot is writing.
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