Greece News, Euro Slide! Impact? Good or Bad?

[TLCOhio]

Greece is definitely in the news these days!!! From when we were last in Europe in early August 2008, the value of the euro compared to the dollar has "improved" to help visitors from the USA. Then, each euro cost about $1.60 and a pound nearly $2. Now, as per the Wall Street Journal today, the euro was at $1.3633 and the pound at $1.5702. This means that the euro has lost 10 per cent of its value since November 2009. The WSJ headline was "Dollar Strengthens on Greece, Growth Concerns".

 

From London's ww.dailymail.co.uk today, they have a story noting: "The European single currency is facing an 'inevitable break-up' a leading French bank claimed yesterday. Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide 'sticking plasters' to cover the deep- seated flaws in the eurozone bloc. The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a 'double-dip' recession in the embattled zone. Claims that the euro could be headed for total collapse are particularly striking when they come from one of the oldest and largest banks in France - a core founder-member."

 

For those like us who have been booked for a summer Europe cruise, the dollar gaining in value might help, maybe! If? If? It is a strange situation on currency values when the dollar is weak, but the euro and pound are even weaker. Fortunately, we booked our cruise many, many months ago at an early, fixed price. Not sure what this means for long-term cruise pricing. This whole growing "debt crisis" in Greece, etc., is making planning your summer 2010 travels challenging and interesting as you consider currency values. Reactions and insights??? Good luck!

 

THANKS! Enjoy! Terry in Ohio

[PC168]

Unfortunately we booked our summer cruises last year in USD, this means fixed rate. However, we need to buy euro in the coming months and we have been debating when to buy, knowing euro has been dropping quite a bit last week...

[TLCOhio]

Unfortunately we booked our summer cruises last year in USD, this means fixed rate. However, we need to buy euro in the coming months and we have been debating when to buy, knowing euro has been dropping quite a bit last week...

 

Time will tell on the value of the euro, dollar, etc. As of late yesterday, this is the lead sentence in the Wall Street Journal story for this morning: "A dramatic turn in sentiment in favor of the dollar and against the euro continued Monday, with lingering fears of a possible European debt crisis pushing the greenback to its highest point in nine months."

 

Another Journal article said: "Dumping of the euro is reaching new extremes, as negative bets on the currency ratchet up to fresh records and analysts warn of further losses ahead. Swiss bank UBS, the world's second-largest currencies dealer, said its clients are now selling the euro against the dollar on a 'massive' scale that 'surpasses anything we have seen since August 2007.' "

 

It's hard to know where all of this is headed. THANKS! Enjoy! Terry in Ohio

[CruiserBruce]

Last I looked (last week) the dollar was the strongest it has been against the Euro going back to at least 2007. We are also going to Europe this summer, and will start changing money at the hint of a bottom in this fall.

[TLCOhio]

Last I looked (last week) the dollar was the strongest it has been against the Euro going back to at least 2007. We are also going to Europe this summer, and will start changing money at the hint of a bottom in this fall.

 

Let us know when you find out for certain on that "bottom" point. Trying to guess that one is hard.

 

THANKS! Enjoy! Terry in Ohio

[CruiserBruce]

I see today the Euro is up some. If that trend continues, Friday I will exchange 1/3 of our budgeted money.

[fpat]

Last I looked (last week) the dollar was the strongest it has been against the Euro going back to at least 2007. We are also going to Europe this summer, and will start changing money at the hint of a bottom in this fall.

 

 

Just Last summer it hit 1.25 range.

[CruiserBruce]

Just Last summer it hit 1.25 range.

 

Looking at my sources again, I see it hit the mid 1.20s in late Jan- early Feb in 2009. Not in the summer. I missed the Jan-Feb rates.

 

My sources put the Euro rate in the 1.40s all summer of 2009- hitting a high of 1.50+ late in the summer.

 

But my point is the same as the OP, the rates have been going down for the last month, and bears close watching for a "bottom" to change at least some money for our summer plans.

[TLCOhio]

Looking at my sources again, I see it hit the mid 1.20s in late Jan- early Feb in 2009. Not in the summer. I missed the Jan-Feb rates. My sources put the Euro rate in the 1.40s all summer of 2009- hitting a high of 1.50+ late in the summer. But my point is the same as the OP, the rates have been going down for the last month, and bears close watching for a "bottom" to change at least some money for our summer plans.

 

YES, the value of the euro has been up and down and doesn't always follow "economics" or "logic" as there are many different factors at play.

 

Euro: HISTORIC per Federal Reserve:

3-Jan-00 1.0155

3-May-00 0.8891

13-Oct-00 0.8568

4-Jun-01 0.8449

1-Jul-02 0.9893

2-Jan-03 1.0361

22-May-03 1.1700

3-Sep-03 1.0845

2-Jan-04 1.2592

23-Apr-04 1.1802

24-Dec-04 1.3536

2-Feb-05 1.3015

1-Jul-05 1.1957

20-Jun-06 1.2568

15-Sep-06 1.2648

2-Jan-07 1.3279

23-Nov-07 1.4838

28-Jun-08 1.5790

From: http://www.federalreserve.gov

 

Sorry, the tabs don't line up correctly. You get the idea on the "ROLLER COAST" ride during the past decade. THANKS! Enjoy! Terry in Ohio

[fpat]

Looking at my sources again, I see it hit the mid 1.20s in late Jan- early Feb in 2009. Not in the summer. I missed the Jan-Feb rates.

 

My sources put the Euro rate in the 1.40s all summer of 2009- hitting a high of 1.50+ late in the summer.

 

But my point is the same as the OP, the rates have been going down for the last month, and bears close watching for a "bottom" to change at least some money for our summer plans.

 

 

My mistake you are correct, I bought my Euro in the Winter for my trip in the Summer and Remembered it was in the 1.25 range when I bought, if anyone is traveling this summer IMO now is the time to buy, anything in the 1.30s again imo it will go up in the summer and as we approch the summer.

 

I am not going until 2011 but thinking about buying some now.

 

 

Best of luck to everyone

[mbjbob]

My mistake you are correct, I bought my Euro in the Winter for my trip in the Summer and Remembered it was in the 1.25 range when I bought, if anyone is traveling this summer IMO now is the time to buy, anything in the 1.30s again imo it will go up in the summer and as we approch the summer.

 

I am not going until 2011 but thinking about buying some now.

 

 

Best of luck to everyone

 

Since you've done this before, where do you suggest buying it at? I've read the airports are not good because of the fees -- where's the best place to purchase Euros here in the US? We're going in the Fall and have been watching it also -- I'm just confused where the best place to purchase them without getting hit with exorbitant fees.

[CruiserBruce]

In general, I have found there are three kinds of exchange rates- very low, moderate, and high. Airport and other "chokepoint" locations will usually charge the high rate.

 

As you will read here in many places, usually the best exchange rates are either ATMs in the foriegn country, or use a credit card. There a one or two specific cards (one is Capital One, I believe) where there isn't a fee, or it is exceptionally low.

 

In the moderate category, AAA is one of the best, followed by common local banks-we use Bank of the West. As we need travelers checks for some of our business, this is where we will get ours. I don't find these fees outragous, in relation to convinence, but some people do.

 

In the past, we have gotten enough cash for the first few days at home (to have the cash, and avoid the "chokepoints") and then gotten cash at ATMs as we traveled. We are on a cruise this time, and don't plan on spending time hunting for an ATM, when we can be touring. Cruise ship rates tend towards higher moderate, so we are avoiding that. We are using traveler's checks for Rome in Limo, so we will get those here.

[PC168]

Today, the euro slided a bit again.

[CruiserBruce]

Today, the euro slided a bit again.

It pretty much dropped what it gained yesterday. Still watching!

[fpat]

Since you've done this before, where do you suggest buying it at? I've read the airports are not good because of the fees -- where's the best place to purchase Euros here in the US? We're going in the Fall and have been watching it also -- I'm just confused where the best place to purchase them without getting hit with exorbitant fees.

 

I have no magic pill to share. Last year I got lucky I saw the $1.60s in the summer a year before my trip. When it went to the $1.20s I bought all my Euros for my trip to cover all meals, hotels, tours etc. Bought from my local bank and paid the fee. Many on these boards advise waiting until you are there and using atms. We are a family of 5 and went on some expensive private tours and I did not want the hasle of taking time out to go to ATMs, find them or worry that the atms limit would cover me for the day.

 

Ends up I made a good move cause people that waited and did atms paid on average .10 more then I did with the fees. I even pre bought Kuna for the one stop.

 

I am not going back until 2011 did Italy last time and doing Greece and Turkey this time. My plan is to maybe buy half what I think I will need now and the other half next winter I find it always goes up in the summer.

 

My advice would be depending on when you are going buy some now and average up or down depending on what happens make 2 or 3 buys to have what you need. Depending on what you are spending for your trip you might save a few hundred $s but in the whole picture dont stress too much about it its going to be an expensive trip no matter what.

 

Just go and have a good time cause life is way too short

 

Best of luck

[m steve]

They have been screwing around with the dollar for a while and now it's their turn.

[fpat]

Interesting article on this topic

 

http://news.yahoo.com/s/time/20100220/wl_time/08599196665800

[TLCOhio]

They have been screwing around with the dollar for a while and now it's their turn.

 

Debating the dollar versus euro could get rather complicated and political. Don't want to get into the "politics" of whose fault it might be and/or whether liberal in Europe means socialist or Republican. That's for a different discussion board.

 

As of this morning, the euro cost equals $1.3622.

 

To update from this morning's Wall Street Journal, here is more on the "showdown" that is getting closer in both Greece and Europe. The WSJ lead story says: "Greece prepared additional austerity measures Friday and its prime minister met with the head of Germany's top bank, as the country raced to soothe international concerns over its debt crisis ahead of a crucial bond sale it may hold next week."

 

It was also detailed in this story: Mr. Papandreou told Greece's parliament Friday that "brutal steps" were needed to repair the country's public finances. "We must do whatever we can now to address the immediate dangers today," Mr. Papandreou said. "Tomorrow it will be too late and the consequences will be much more dire." The WSJ story also noted: "Berlin and Paris have avoided any explicit promises of aid so far, keeping the pressure on the small Aegean nation to fix its own problems."

 

Clearly the unions and people in Greece will not like this "belt-tightening", meaning more strikes, disruptions, etc. Others have noted how these strikes, etc., can impact tourist in a negative manner. If you are planning on a summer trip in Greece, there is still some time for this to "settle out" and stabilize before your trip. It is not good news for Greece and certain of these other Europe countries that have had lagging economies and/or vast over-spending.

 

THANKS! Enjoy! Terry in Ohio