Get Euros now or later

[audreyh1]

Well, the exchange rate moved from a low of 1.05 US/Eur a couple of days ago to 1.085 today with the Fed's statement. People who are going to spend $10K on their trip have just lost US$333. That's 6 long taxi rides.

Better buy your FXE now to lock in what you can.

Not too worried. I booked a train ticket yesterday, and will book a few more tomorrow. It's so far down from where it was a few weeks ago that it is still good.

A big chunk of that $10K trip is the airfare, still denominated in USD.

 

[audreyh1]

Well, the exchange rate moved from a low of 1.05 US/Eur a couple of days ago to 1.085 today with the Fed's statement. People who are going to spend $10K on their trip have just lost US$333. That's 6 long taxi rides.

Better buy your FXE now to lock in what you can.

Looks like it was a one day wonder! And the VISA exchange rate for transactions posting today is 1.099! I'm glad I didn't book my train tickets yesterday.

It's already dropped below 1.07 again today.

When I book stuff online in Europe it often takes 2 days for the transactions to post.

 

[MichaelB]

I'm glad someone is confident. It's not me, though!

The one thing I am fully confident of is that after a sustained move in any direction, the sell-side financial world will then 1) explain why that was logical, obvious and entirely predictable, and 2) project that trend forward indefinitely.

Now that folks like GS are now predicting this, I get the feeling the Euro decline may be nearing an end.

 

[Theseus]

People who are going to spend $10K on their trip have just lost US$333.

Just showed DW a link to a European dream trip that would run about $32k all in - itinerary is actually pretty similar to the trip we did in 1992 for about $8k but upscaled a bit to reflect our current tastes and accommodations for that aging thing... still a bit out of reach unless I say to heck with SWR and HI tax credits. USD has been steadily gaining on the GB Pound also, recently ordered parts for my German motorcycle from the UK. got them for little over half of what it costs to buy them through US dealers, shipping included.

 

[rodi]

Just showed DW a link to a European dream trip that would run about $32k all in - itinerary is actually pretty similar to the trip we did in 1992 for about $8k but upscaled a bit to reflect our current tastes and accommodations for that aging thing... still a bit out of reach unless I say to heck with SWR and HI tax credits. USD has been steadily gaining on the GB Pound also, recently ordered parts for my German motorcycle from the UK. got them for little over half of what it costs to buy them through US dealers, shipping included.

$32K? My budget for the 4 of us, including airfare, train, spending, and lodging is $25k. (The falling Euro is helping us.) That's for FOUR people and 9 weeks. It's 11 cities in 7 countries. It helps that the kids are still 14 and under, so the train fares are 1/2 price for some of the trips. (Not on the eurostar, unfortunately). Right now we're tracking on budget... with very nice apartments in good locations. My target budget is $25k - but I fully expect (but am trying to avoid) an overage of about $3k when all is said and done. That's still 4k under your dream trip for 2.

 

[Theseus]

$32K? My budget for the 4 of us, including airfare, train, spending, and lodging is $25k. (The falling Euro is helping us.) That's for FOUR people and 9 weeks. It's 11 cities in 7 countries. It helps that the kids are still 14 and under, so the train fares are 1/2 price for some of the trips. (Not on the eurostar, unfortunately). Right now we're tracking on budget... with very nice apartments in good locations. My target budget is $25k - but I fully expect (but am trying to avoid) an overage of about $3k when all is said and done. That's still 4k under your dream trip for 2.

Yeah, that's where the 'dream' thing kind of pops up, as in I wake up and reality hits. Without getting into the specifics, it really is an over the top trip in terms of activities and some awesome luxuries, Living Way Beyond Our Means stuff to the max. Weird thing is I still almost want to do it. We enjoyed the '92 trip so much, we agreed back then that we should repeat every 5 years. Both of us being pretty much LBYM by nature, that didn't happen as we kept our noses to the grindstone and limited our vacations to mostly frugal stateside travel, except for a single all-inclusive escape from bone chilling winter weather. There are similar scaled down trips available that would easily cut 25%-50% from the cost, but considering we're not getting any younger it is still somewhat tempting and would definitely be a once in a lifetime thing, i.e. buying an experience rather than a thing. But it is pretty much an impossibility to pry that much money from my paws, more likely that proceeds from our future estate will fund someone else's experiences instead

 

[NW-Bound]

It does look like the US dollar is regaining strength against nearly all other currencies, not just the euro but Asian currencies too. And stocks are slipping, except for a couple of sectors. The whole thing may be just a one-day wonder. This led me to say this.

The Oracle of New Orleans is more powerful than the Fed Chairwoman.

About travel expenses, we stayed at nice hotels only back when DW still got good deals from her work. In fact quite a few of our trips were made with her frequent miles; that even included business class (and 1st class once) to places like Australia and New Zealand. Ah, the good ole' days. When these freebies were depleted, we were back to flying coach and staying at Ibis. The fancy hotels, I do not care for as much as the better plane seats.

And people do not think they can spend more money!

 

[audreyh1]

Yes, the USD is strong against all other currencies as we discovered when we recently ordered some tea from Canada.

We seem to run about $5K per week for the two of us on our Europe trips, including airfare. This upcoming trip may be a little pricier than that as we have booked a tour for part of it, but whatever. Besides, we still have money left over from last year's travel budget.

 

[Totoro]

The one thing I am fully confident of is that after a sustained move in any direction, the sell-side financial world will then 1) explain why that was logical, obvious and entirely predictable, and 2) project that trend forward indefinitely.

Now that folks like GS are now predicting this, I get the feeling the Euro decline may be nearing an end.

I'm more and more confused by analysts (usually sell-side indeed) who put their target price always very close to the actual selling price.

Stock goes up, target price goes up. Stock goes down, target price goes down.

Their valuations somehow also end up to be in area of where the stock prices WAS, never where it will be.

And yet, these people stay employed .. curiouser and curiouser ..

 

[Nemo2]

And yet, these people stay employed .. curiouser and curiouser ..

All tied in with the 'expecteds'....."Unexpected", "Less than expected", and "Greater than expected".

 

[Dakotah]

I would also recommend waiting.
You get about the best rate from credit cards and ATMs when you get to Europe. Our bank ( Wells Fargo ) always claims there is no service charge but they "jack " you about 5% on their exchange rate vs. the going rate.
There is really no way to be certain of the exchange rate in two months although it seems to be on a downward trajectory.
It was about $1.20 when we were in Europe earlier this spring.
Enjoy!



Sent from my iPad using Early Retirement Forum

 

[rodi]

This thread is kind of amusing as the euro jumped up yesterday enough to be a several hundred dollar hit on my outstanding vacation bills. (I prepaid everything I could while the rates were low... but still buying train tickets and several of the rental apartments want cash for the balance when we show up.) As I type this it's 1.08$/euro... It was 1.4 earlier this week.

Don't get me wrong - I'm still going and will have fun... but I hope the Euro does drop back down again... especially in the next week as I have two train tickets being held on capitainetrain.com.

 

[Chuckanut]

Here's a quote from a article about the declining Euro and how we need to be careful others don't take the savings from us. Apparently, at some airports ATMs run by money changer companies charge muct higher conversion rates than bank ATMS out side the airports.

http://www.bizjournals.com/bizjourn...-us-dollar-benefit-for-travelers.html?ana=twt

How unfavorable are Travelex rates? According to the firm's website on Tuesday evening, 100 U.S. dollars will buy 60 British pounds and 88 pence. That's a 10 percent off-the-top cut for Travelex since the bank exchange rate on Tuesday evening was 67 pounds and 80 pence.

How does one beat the money changer rates and get the better bank rates?
Check who owns the ATM here:

http://www.mastercard.us/cardholder-services/atm-locator.html

 

[audreyh1]

This thread is kind of amusing as the euro jumped up yesterday enough to be a several hundred dollar hit on my outstanding vacation bills. (I prepaid everything I could while the rates were low... but still buying train tickets and several of the rental apartments want cash for the balance when we show up.) As I type this it's 1.08$/euro... It was 1.4 earlier this week.

Don't get me wrong - I'm still going and will have fun... but I hope the Euro does drop back down again... especially in the next week as I have two train tickets being held on capitainetrain.com.

Same here, lol! Have charges pending on the rest of my train tickets.

Rate jumped Wed, then dropped Thursday, then jumped again today. I think I'll have gotten a better deal on the things I paid for last week!

But c'est la vie!

(See, I'm getting ready for France! )

My instinct tells me the Euro is likely drop further by the time we get there. That's when we get to pay the hotel bills.

 

[NW-Bound]

Here's some music to help put you into the mood, and perhaps to take with you when you tour the city on foot.

My favorite is "La Bohème" by Charles Aznavour, reminiscing about a young artist's life in Montmartre. Video with subtitle follows.

But there are more. "Coin de Rue"? "Moulin Rouge"? "La Mer"?

 

[audreyh1]

Oh, I have to listen to French music too? LOL!

Thanks!

DH can't stand French singing, particularly from that deep smokey-voiced Lady.

 

[NW-Bound]

One does not have to.

On the other hand, for a complete package, food, drink, sight, sound, how can one leave out music?

 

[audreyh1]

One does not have to.

On the other hand, for a complete package, food, drink, sight, sound, how can one leave out music?

I was hoping they were playing American jazz over there.

 

[unno2002]

Would travelers checks in Euro's work?

 

[NW-Bound]

I was hoping they were playing American jazz over there.

One might as well stay home and eat steak or hamburger. And I do love jazz and steak and hamburger.

When we were in Nice, during the Carnival, they played American rock and pop music on the loudspeakers in the street. ARGHHH!

That's why I have to bring my own.

 

[NW-Bound]

OK, how about an American song but with French lyrics? This rendition is by a British singer though. That makes it international music, eh?

If one does not like the music, well, at least the scenery is interesting, I hope.

 

[audreyh1]

OK, how about an American song but with French lyrics? This rendition is by a British singer though. That makes it international music, eh?

If one does not like the music, well, at least the scenery is interesting, I hope.

That's better. Thanks! Still a bit of odd French nasal warbling even with a British singer, LOL!

I enjoy the French composers Debussy and Fauré. Branford Marsalis "Romances for the Saxophone" has a nice selection. I like this Arabesque N°1 - Claude Debussy

 

[Marita40]

I'm in Europe now and it really is a bargain compared to the last time I was here!

As to getting euros ahead, I always get some as a safety precaution. Typical in Rome is that the airport ATM will run out of cash when hoards from a flight descend on it. Then you have to have the cab find an ATM for you. I just feel safer with euros in hand when I land.

 

[audreyh1]

I'm in Europe now and it really is a bargain compared to the last time I was here!

As to getting euros ahead, I always get some as a safety precaution. Typical in Rome is that the airport ATM will run out of cash when hoards from a flight descend on it. Then you have to have the cab find an ATM for you. I just feel safer with euros in hand when I land.

Glad you are enjoying the discount!! Enjoy!!!! Salute!

 

[Chuckanut]

Typical in Rome is that the airport ATM will run out of cash when hoards from a flight descend on it. Then you have to have the cab find an ATM for you.

Trust the Italians to add an interesting and unexpected problem to your trip. They certainly help make the memories.