So the Euro is worth $1.44 and £.70

irish life

In January it was worth £0.65. It's now pretty much the highest rate against the pound in 2 years.
In February it was worth $1.29. It's the highest rate against the Dollar EVER.

For the simple minded like me. Does that mean if you spend €1,000 in the US today you're getting $150 more than you would have 6 months ago? Or is it more complicated than that?

cson

Investments and Markets forum ftw.

But yeah now is a good time to go to the states. On the flip side now is squeaky bum time for you if you happen to work in an American multinational.

Thrill

It could also mean a drop in tourism as it will be really expensive for Americans to come here on holiday.

Conor108

Thrill wrote: »

It could also mean a drop in tourism as it will be really expensive for Americans to come here on holiday.

More their loss than ours tbh

Karoma

OP: Do you want an informed, correct answer or do you want AH answers? Let me know if you want it moved.

daniel3982

Bollocks, can it wait two weeks til I get back over to ireland til it raises against the £ please.

Just be glad the doller is sinking, oil is priced in dollers = cheap (well cheaper for us) petrol.

ibh

Yea it's no good if your like me and working in Northern Ireland. It's bad enough that i pay an extra €2500 a year in tax, but now my wages convert to less than i had anticipated when i took the job. I suppose for years other people benefitted from the pound(stg) being stronger..

bman

Does that mean if you spend €1,000 in the US today you're getting $150 more than you would have 6 months ago? Or is it more complicated than that?

This whole area was something I never really got. Surely if the $ is worth less € since last month the price of items in America would go up by a corresponding amount. Therefore, you would get an extra $150 (or whatever) but the price of items would have gone up and you would only be getting the same value for money for your €'s anyway? ie. you get the same quantity/quality of goods as you got a month ago for the same price in €.

I'm sure someone will come on now and tell me I'm 100% wrong!!

Eoin

bman wrote: »

This whole area was something I never really got. Surely if the $ is worth less € since last month the price of items in America would go up by a corresponding amount. Therefore, you would get an extra $150 (or whatever) but the price of items would have gone up and you would only be getting the same value for money for your €'s anyway? ie. you get the same quantity/quality of goods as you got a month ago for the same price in €.

I'm sure someone will come on now and tell me I'm 100% wrong!!

American shops aren't going to increase their prices because Europeans on holiday are getting a better deal through the exchange rate.

Conor108 wrote:

More their loss than ours tbh

bollocks - the tourism trade is very important to Ireland.

bman

eoin_s wrote: »

American shops aren't going to reduce their prices because Europeans on holiday are getting a better deal through the exchange rate.

I'm saying the prices in America would go up, not drop.

Eoin

bman wrote: »

I'm saying the prices in America would go up, not drop.

Sorry, that was a typo on my behalf, will edit now. I'd say that increasing the prices would be done only if it was necessary for the domestic market, not just because it made it a better deal for European tourists.

elambra

Crap for people like me working in England!

Maybe someone can advise:
If looking to transfer a large amount of cash from £ to € should I wait or will the difference be relativley negligible? thinking like £8-10k..

It would probably be better to keep savings in £ then wouldnt it? or would it?

blah

I'm off to Vegas in a week, live in London at the moment, so all I have to remember is £1 = $2, pretty sweet (actually at this stage it's £1 = $2.05)

gurramok

Its due to go even higher when the Fed reduces rates, German ECB(head of German bank) said the dollar was overvalued(not under) and expects it to hit $1.50 soon

leninbenjamin

eoin_s wrote: »

American shops aren't going to increase their prices because Europeans on holiday are getting a better deal through the exchange rate.

no, but it will add inflationary pressures seeing as imported goods will be more expensive. most of what you'd buy in an American shop from electronics to clothes will be made abroad so the fall in the dollar will increase production costs...

daveirl

This post has been deleted.

Saruman

Im going back to chicago in June... I wonder should i get some cash now or just wait, it is a long way off.

blah

Saruman wrote: »

Im going back to chicago in June... I wonder should i get some cash now or just wait, it is a long way off.

That's what I was thinking 3 months ago, but there's been no change since then. I'm no economist though, don't know what will happen in the future.

leninbenjamin

Saruman wrote: »

Im going back to chicago in June... I wonder should i get some cash now or just wait, it is a long way off.

it's expected to drop further in the near future. but then again this is economics. you're typical economist is like a broken clock, he's always right sometimes...

biko

Deleted User wrote: »

Just be glad the doller is sinking, oil is priced in dollers = cheap (well cheaper for us) petrol.

Nah, oil is priced in Euro. Iraq started the change.

"The first country to actually make the switch was a very important oil exporter indeed: Iraq, in November 2000. Before the war in Iraq began, some observers, myself included, argued that this might well be a major reason for the US desire to invade and the strong Franco-German opposition to the invasion"

For a more comedic view - look up Robert Newman - A History of Oil on googlevideo

SimpleSam06

biko wrote: »

Nah, oil is priced in Euro. Iraq started the change.

As far as I know, oil is still almost universally priced in dollars. The move by Iraq to switch to euros probably played a large part in it's downfall, alright. Iran is the next major oil producer moving steadily towards setting up an oil trading exchange built around the euro, which will have more effect on their chances of being invaded than any amount of guff about WMD.

SimpleSam06

SimpleSam06 wrote: »

As far as I know, oil is still almost universally priced in dollars. The move by Iraq to switch to euros probably played a large part in it's downfall, alright. Iran is the next major oil producer moving steadily towards setting up an oil trading exchange built around the euro, which will have more effect on their chances of being invaded than any amount of guff about WMD.

It'll be the gold standard next! He who has the gold standard, rules the world!

Not as important now as oil but still a major hedge during volitile markets.

SimpleSam06

Deleted User wrote: »

Not as important now as oil but still a major hedge during volitile markets.

And at a thirty year high, if I'm not mistaken. Still, run away from the goldbugs. Run quite fast, Dougal.

DonJose

cson wrote: »

On the flip side now is squeaky bum time for you if you happen to work in an American multinational.

Or if the company your work for exports to the US

Fears for 500 jobs at Waterford Wedgwood
http://www.rte.ie/business/2007/1031/waterford.html

MooseJam

Go Euro Go Euro, makes me proud to be European

projectmayhem

MooseJam wrote: »

Go Euro Go Euro, makes me proud to be European

fortress europe ftw

Mr.Micro

The Euro does not stretch very far in rip off Ireland .You get less and less for it. Now there's irony for you .