Exchange rate

Staff Sergeant

Just wondering if anyone dare speculate as to whether or not the exchange rate, euro to us dollar, if it will keep improving in the coming weeks?

Sorry if this thread is better suited elsewhere!

robbie99

I'd say there's an 80% chance that there'll be no significant change with a 10% chance of the euro gaining and a 10% chance of the dollar gaining.

Not much help I know if there's anything in the pipeline that can move the market in a few weeks time that is already known, then that would already be priced in.

coylemj

The Euro recently dipped down to USD 1.29 but the successful sale of bonds by Portugal has eased concerns about the Euro and today the head of the ECB has expressed worries about inflation in the eurozone which is an early signal that the ECB will consider increasing interest rates, this sentiment will strengthen the Euro as increasing interest rates in the eurozone will bring money in rather than out and this will bolster the Euro.

Spain and Italy also appear to be nearing successful sale of bonds so my prediction is that the Euro will strengthen against the dollar in the next few weeks, it may not go back to 1.40 but should be heading in the right direction in the near term. If you're travelling to the US soon I'd hold off for a while before buying dollars.

However bear in mind that if you go to the US as a tourist you should probably do most of your purchasing with a credit card as you will get a significantly better exchange rate than you would buying hard cash from banks or those rip-off FX desks in airports.

I am not a qualified financial adviser so please treat this as a personal comment from a complete amateur, use this information at your own risk.

Edit: just checked and the Euro is already back to 1.3362

http://biz.yahoo.com/ap/110113/world_markets.html;_ylt=AvBdHKCMRGplnkToonHofx2z0KB4;_ylu=X3oDMTFhYmpvZjd1BHBvcwMxBHNlYwNuZXdzX2NvbW1lbnRhcnkEc2xrA2V1cm9zdXJnZXNhZg--?.v=10

Staff Sergeant

Cheers guys.

The euro is showing great signs of strengthening at the minute, so I'll leave off getting dollars for a week or two.