Buy Euros now???

We are leaving on Eclipse on July 18, 2010 to Spain, Portugal and France. We normally wait until we are in Europe to buy euros but with the value at it's lowest to the US $ should we buy now? Or will it drop even more?

Expert advice needed.

Thanks

Don

From what I've read, the Euro may be on the way back up against the dollar because the EU seems to be getting a grip on the loans to Greece. Who knows, though ... no one can make an accurate prediction on any global economic outlook. Spain, Italy, Portugal and Ireland will possibly be figuring into the equation, and there is no way to anticipate what other unexpected situations are ahead.

If you decide to buy your Euros ahead of time, what will the fees and exchange rate be where you buy them? Will they wipe out any savings you may encounter if the dollar weakens? Are you comfortable carrying a large amount of cash?

Are you planning to use cash for a lot of your expenses? If you're going to use credit or debit, you will be charged at the going rate.

Personally, if it were me, I would be more concerned with being sure my credit card doesn't charge a foreign transaction fee, and also that my own bank will reimburse me for ATM fees in Europe. I would probably just plan on getting my Euros as I need them at ATMs, and make sure my card doesn't charge extra for foreign transactions.

The Euro is on shaky ground. Tough decision

We are leaving on Eclipse on July 18, 2010 to Spain, Portugal and France. We normally wait until we are in Europe to buy euros but with the value at it's lowest to the US $ should we buy now? Or will it drop even more?

 

Expert advice needed.

 

Thanks

Don

How does one predict the value of currency in the current economic situation? I think that it all depends on many factors but Euro will go down if the situation in Greece (and other European countries) fails to stabilize and improve. How likely is that? In my opinion, this is only the beginning of the long term economic slide but as far as short term Euro value, it may rise if Greece gets more bailouts and help from IMF soon. Germany seems onboard for more bailouts but looking at the volatility of our own financial markets and all the indicies, Euro may go down further. If anyone could actually predict this he or she would be a billionaire. I guess that's why we have currency futures.

In other words, I have no idea if it will drop or rise! :)

Don, if you find a crystal ball, can I borrow it? ;)

We always buy a one day's amount of euros at home so we have them in our pocket at the airports, trainstations etc. Not much, but a hundred or so. But we will wait till we are there and use the ATM's.

Who knows? You may end up being stuck in an airport watching the ash cloud go by.:eek:

Currency fluctuations rarely go in a straight line and the Euro's path will be up and down. Overall, it will likely continue declining (and some analysts think it may reach parity with the US $$) but timing for the "best rate" will be extremely difficult even for the experts. Averaging might be the best approach, spreading your cash conversions over several days or weeks.

California cruising, the Eclipse isn't sailing on the 18th July it sets off for a 14 night cruise on the 10th July

Was listening to a finance program on NPR this morning, (Marketplace Money) and they recommended you wait to buy Euros, as Portugal and Spain are also on shaky ground, and the value of the euro is likely to go down before it comes back up. And if you buy them here, you will be paying transaction fees and a poorer exchange rate than if you waited to get them from an ATM in your arrival airport. EM

Regarding the exchange rate - the current rate is 1.23.

what happens really really depend upon what happens at the end of May when Greece has 8 billion in payments due. If somehow the EU manages to put together a bailout plan for the Greece government then it is likely that the Euro will stabize or even increase, until Portgal's loan come due.

If however the rioting in Athens continues and the fear of a Greek default escalates then it is likely that the Euro falls to 1.18 - 1.15 at the very lowest.

The biggest concern I have when going to Europe isn't the exchange rates as much as the transaction fee(s) which vary from one institution to another.