Purchasing Euro's now or later
Apr 26th, 2011, 10:20 AM
#23
"<i>Wow - didn't think I would get beaten up but asking a simple question. Maybe I wasn't clear.
I was trying to get advice from people that travel more than I if they would go ahead and purchase some euros now or wait for the simple reason that I figured people have more knowledge then I do about exchange rates since we don't travel to Europe often.</i>'
You have to understand who is answering. Our friend logos is a German who loves to send up Americans - Sort of our resident 'loveable" scoundrel.
The ones who DO travel <u>to</u> Europe frequently have told you the truth. You can't possibly get € cheaply in the US. Your bank may not charge 'fees' but they do charge you a lot to buy €. They don't do it for free and their profit comes in the lousy exchange rate they charge.
No one knows which way the $-€ rate is going (it goes up and down all the time) but for you to break even there would have to be a 10% or more devaluation in the $ between now and your trip.
I was trying to get advice from people that travel more than I if they would go ahead and purchase some euros now or wait for the simple reason that I figured people have more knowledge then I do about exchange rates since we don't travel to Europe often.</i>'
You have to understand who is answering. Our friend logos is a German who loves to send up Americans - Sort of our resident 'loveable" scoundrel.
The ones who DO travel <u>to</u> Europe frequently have told you the truth. You can't possibly get € cheaply in the US. Your bank may not charge 'fees' but they do charge you a lot to buy €. They don't do it for free and their profit comes in the lousy exchange rate they charge.
No one knows which way the $-€ rate is going (it goes up and down all the time) but for you to break even there would have to be a 10% or more devaluation in the $ between now and your trip.
Apr 26th, 2011, 10:27 AM
#24
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If anyone can tell me what the exchange rate will be in June with accuracy, please let me know so I can speculate on the Forex markets heavily 
Actually for small punters, and I mean less then say 50-100 MILLION, then it matters very little, IMO you only get retail rate and by the time the bank finishes with commission's, you lose or gain one or two euro.
I would just use my ATM card at the airport when you arrive to draw out some euros. A good idea is to contact your card issuer and ask for a higher daily limit then the usual 200 euro which is standard, and lets them know you will be in Europe in case they suspend your card on suspicion of theft.
Actually for small punters, and I mean less then say 50-100 MILLION, then it matters very little, IMO you only get retail rate and by the time the bank finishes with commission's, you lose or gain one or two euro.
I would just use my ATM card at the airport when you arrive to draw out some euros. A good idea is to contact your card issuer and ask for a higher daily limit then the usual 200 euro which is standard, and lets them know you will be in Europe in case they suspend your card on suspicion of theft.
Apr 26th, 2011, 10:35 AM
#25
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There's some fluctuation but the trend is clear and the trend is your friend. If you need them at a given moment it might be unfavourable, but then the trend is clear and easy to see. Those that deny it, do it because they don't want to accept the facts.
You know, it's like that the moment when you need to make an appointment with your dentist, the tooth never hurts. It'll be getting better... (No, it won't!)
You know, it's like that the moment when you need to make an appointment with your dentist, the tooth never hurts. It'll be getting better... (No, it won't!)
Apr 26th, 2011, 10:53 AM
#27
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For those of us with apartment rentals, we have to arrive with euros in hand.
The option of the ATM is off the table when you need 1400+euros right off the bat.
(BTW my bank charged a % for atm withdrawals last month..making some very pricey...I will change banks before returning in October)
I understand the original poster's concerns though as I am wondering the same thing.
I could let you know when I decide to buy them...based on my past history, that would assure you that anytime AFTER that date the price will drop.
The option of the ATM is off the table when you need 1400+euros right off the bat.
(BTW my bank charged a % for atm withdrawals last month..making some very pricey...I will change banks before returning in October)
I understand the original poster's concerns though as I am wondering the same thing.
I could let you know when I decide to buy them...based on my past history, that would assure you that anytime AFTER that date the price will drop.
Apr 26th, 2011, 10:55 AM
#28
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logos....aren't you the same logos I read posts from when some old thread was resurrected claiming the introduction of the euro was a violation of German law and how you wanted to go back to Deutsch Marks (or was it oost marks?)....
Apr 26th, 2011, 11:05 AM
#29
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It was a little scary, I didn't expect to go below 1.20, but then given the momentum it was sure it would reverse quickly. Now that it's clear the USD will go down first it's all become easier. I still like and keep my Aussi$ investments. It was a sure bet at 1.98 for the €. . As was silver below $10. The 1.65 for the yen at the peak of the carry trade never really interested me. The yen never earned much interest, I went to Japan instead. .
Yeah, after having made some really bad investments during the tech boom, I made up for it in the recent years.
. As was silver below $10. The 1.65 for the yen at the peak of the carry trade never really interested me. The yen never earned much interest, I went to Japan instead. . Yeah, after having made some really bad investments during the tech boom, I made up for it in the recent years.
Apr 26th, 2011, 11:06 AM
#30
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"The option of the ATM is off the table when you need 1400+euros right off the bat."
Not really. If there are two or more people, you have at least two bank accounts from which to draw (even when I travel alone I always make sure to have ATM-accessible funds in two separate accounts) and each has his/her daily withdrawal limit increased to $1000 for the first day or two, you have your cash in two withdrawals from each account (assuming a $500 max per transaction at the ATM).
Or perhaps the landlord will take half the cash on the first day and wait until the next morning for the remainder.
I'm not telling you not to get Euros here if that's your preference, just saying it may not be necessary.
Not really. If there are two or more people, you have at least two bank accounts from which to draw (even when I travel alone I always make sure to have ATM-accessible funds in two separate accounts) and each has his/her daily withdrawal limit increased to $1000 for the first day or two, you have your cash in two withdrawals from each account (assuming a $500 max per transaction at the ATM).
Or perhaps the landlord will take half the cash on the first day and wait until the next morning for the remainder.
I'm not telling you not to get Euros here if that's your preference, just saying it may not be necessary.
Apr 26th, 2011, 11:09 AM
#31
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1. Your main question is unanswerable, whether by a complete neophyte in Europe or someone who's been there a thousand times. Frequent travel to Europe in no way equates to knowledge of what will happen to the exchange rate.
2. No matter what your bank tells you, it's making a nice piece of change selling you euros, likely at least 7 percent.
3. If you absolutely must buy some euros in advance of travel, there's no reason to buy $500 worth. You just need enough until you get to an ATM machine.
2. No matter what your bank tells you, it's making a nice piece of change selling you euros, likely at least 7 percent.
3. If you absolutely must buy some euros in advance of travel, there's no reason to buy $500 worth. You just need enough until you get to an ATM machine.
Apr 26th, 2011, 11:15 AM
#32
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If it makes you more comfortable to arrive in country with local currency in hand, then I would change a couple hundred dollars' worth. Regardless of fees and difference in exchange rates, it won't cost you more than a couple dollars this way versus getting the cash at an ATM upon arrival.
My strategy is to arrive with no local cash (unless I have some left over) and then just hit the ATM upon arrival. I do carry some extra USD just in case that I can exchange at the airport if for whatever reason my ATM card won't work.
For exchanging more before or upon arrival as opposed to using the ATM - even if I could get a very good exchange rate, I would hesitate to carry a bunch of cash around.
My strategy is to arrive with no local cash (unless I have some left over) and then just hit the ATM upon arrival. I do carry some extra USD just in case that I can exchange at the airport if for whatever reason my ATM card won't work.
For exchanging more before or upon arrival as opposed to using the ATM - even if I could get a very good exchange rate, I would hesitate to carry a bunch of cash around.
Apr 26th, 2011, 11:15 AM
#33
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Yes, xyz123 the € introduction was illegal and I want the DM back like so many others. But I'm not the one that makes the rules. You have to react to a given situation and make the best out of it. The € will last longer than the USD. I wouldn't invest in $ at all and in € only where it looks still acceptable. The big international companies will always survive, but they are quite expensive already.
Maybe a small house in the Bavarian forest for the weekend. I could like that, but that's a lot of work too.
Maybe a small house in the Bavarian forest for the weekend. I could like that, but that's a lot of work too.
Apr 26th, 2011, 11:16 AM
#34
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To the ga9497: I really doubt that your bank rate is 1.49/E. I think that's the price at which they're buying Euros, not selling them. The sell price (which is the exchange rate for you to OBTAIN Euros) is probably a lot closer to the 1.55-1.58 range. That's about 7-9% above Interbank.
Here are two things you can do to lower costs, in addition to only getting Euros at the airport ATM (seriously, it's not that hard).
First: open Cap One online savings account (or good credit union) = 0% fee on exchanges.
Second: Obtain Venture card from Cap One or similar from credit union = 0% fees.
Here are two things you can do to lower costs, in addition to only getting Euros at the airport ATM (seriously, it's not that hard).
First: open Cap One online savings account (or good credit union) = 0% fee on exchanges.
Second: Obtain Venture card from Cap One or similar from credit union = 0% fees.
Apr 26th, 2011, 11:30 AM
#36
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...also bear in mond tony56 that not only does your bank set a limit on what you can withdraw on any given day with a particular card, so does the French bank and while you can probably get your bank to raise its limit, there's little you can do about the French bank's limit on daily withdrawals with a particular card.
Apr 26th, 2011, 11:37 AM
#37
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"the French bank's limit on daily withdrawals with a particular card"
If you encounter such a limit, just cross the street to the ATM of another bank and withdraw up to your bank's daily limit for your account.
If you encounter such a limit, just cross the street to the ATM of another bank and withdraw up to your bank's daily limit for your account.
Apr 26th, 2011, 12:00 PM
#38
xyz123: "<i> . . . so does the French bank and while you can probably get your bank to raise its limit, there's little you can do about the French bank's limit on daily withdrawals with a particular card.</i>"
The French banks don't have a daily limit. They often DO have a <u>per-transaction</u> limit. But you may not even have to cross the street like kayd suggests (though that will be the case sometimes) -- just re-insert your card in the same machine and that usually works.
The French banks don't have a daily limit. They often DO have a <u>per-transaction</u> limit. But you may not even have to cross the street like kayd suggests (though that will be the case sometimes) -- just re-insert your card in the same machine and that usually works.
Apr 26th, 2011, 02:58 PM
#40
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Well, in the late 70s, early 80s, long before the internet, they introduced a new technology called TVtext. On yout TV, you could get the exchange rate for the $ updated every hour.
The postbank was updating their exchange rates every day at 12 o'clock. When Mr. Reagan let the $ skyrocket it was the easiest way to make money. You looked at TVtext at 11am to check if the $ has gained value overnight. If it was enough, you went to the post office to buy $ at yesterdays rate waited one hour and sold them again for a profit.
I did that sveral times always making at least 50 bucks.
Thoses where the days LOL.
The postbank was updating their exchange rates every day at 12 o'clock. When Mr. Reagan let the $ skyrocket it was the easiest way to make money. You looked at TVtext at 11am to check if the $ has gained value overnight. If it was enough, you went to the post office to buy $ at yesterdays rate waited one hour and sold them again for a profit.
I did that sveral times always making at least 50 bucks.
Thoses where the days LOL.
