bigboy,
We just returned from Ireland last week. ATM withdrawals were at around USD1.23 per Euro; credit card purchases were about $1.27. So you can save a little if you pay cash for your purchases.

However, I don't think your budget of $1,000 will cover 3 weeks of meals & sightseeing. We (2 people) spent about that much in 9 days.

The dollar is likely to keep getting much worse versus the Euro, not only because of the lower interest rates in the US, but the US need to improve its trade deficient. Some economists suggest another 30% swing is necessary.

Us US tourists traveling to Europe just make things worse.

Keith

>If there pound is like our dollar to them, then they are paying about the same for cereal, eggs and milk etc. that I pay.<

The difference is, however, that the median income in the UK is about 65-75% of the median income in the US, ie, wemake 37,000 USD, they make about 27,000 GBP.

In addition, housing costs are much higher.

Keep in mind that in economics, as in life, there are almost always trade-offs. The drop in interest rates by the Federal Reserve helped to jump-start the economy after a recession. It also saved the average American a huge amount of money by making home purchases more affordable (lower interest rates), and letting others refinance. The boost in the housing markets helped construction workers, electricians, and anyone involved in any business that sells home-related merchandise.

The low interests rates also make American exports much cheaper overseas, so this will help Americans who are employed in trade, and the increase in export sales helps to minimize the trade deficit.

The drop in interest rates directly affects employment in the U.S. (helping people get jobs). The high interest rates by the German Bundesbank keeps unemployment in Germany over 8%. (There was a recent reality TV program in Germany, where the Grand Prize Winner was awarded - a job.)

The exchange rate will probably improve as the U.S. economic recovery continues. Interest rates are abnormally low, and the Fed is sure to keep raising rates so long as the economy continues to grow.

More a piece of philosophy than any kind of answer... I don't worry over things I can't change. I don't convert every purchase I make back into USD in my mind. Use your ATM card upon arrival and proceed with your fabulous vacation. If your money seems to be going to fast, eat a cheaper meal or skip a costly tour, or something.

Because the original poster's trip is only a couple weeks hence, I can't imagine things will change too much... so my answer to "where do you think it will be" is it really doesn't matter.

Bigboy -- I think that the biggest savings we had (compared to you) is with 2 and 3 star hotels (instead of 4 and 5 star). I also agree with someone above who said that 1000 euros for food and sightseeing is probably not enough. If you reduce what you're spending on hotels, you'll have more for food and sightseeing. (We also do not rent a car -- only use public transportation, but I don't know how much that saves us.)

bigboy72712, my son and I were on a budget just recently and we spent the following:
Airfare between all cities - whatever
Hotels - whatever
On the ground (all other expenses inclusive) -
929 Euros for 12 nights in Paris and Berlin
200 pounds for 3 nights in London

This was comfortable enough but definitely on the spartan budget side.

Europeans do not generally make better salaries than Americans or even Canadians. They do have fewer cars and smaller homes, generally speaking. You can take a look at some UK and European job sites to see typical salaries.

In re-reading this thread it surprises me that someone who chooses 4 and 5 star hotels only then worries over a few cents on the dollar. If you dropped a star or two you'd save way more than enough to make up for any currency fluctuations.

I used to think similar things when I first traveled to France many years ago, but from being there more and not just doing touristy things all the time, I know feel that things aren't that different in cost from the US, and some are cheaper. I mean everyday things, like groceries, movies, etc. Restaurants don't cost more than the US, Bigboy, at least not anywhere I have been except England. The only big differences I notice are really cheap discount store stuff, and even that is getting better, for some reason. For example, just buying cheap underwear or socks or something in a Monoprix used to cost you about the same as US $4-5 each. Now, you can get some things cheaper, but I still don't see it like in the US where you could go into Kmart or something and get decent socks for $1-2 a pair.

I also remember I wanted a cheap desk lamp and pillow because I was staying longterm in a dormintory without good lighting and only those French bolster pillows. Well, in the US, you could also buy some cheap lamp for $10, as well as a cheap pillow, but I couldn't find anything in Paris like that for less than about US$50. That was in 1988, though, and you can do better now in getting stuff like that in Monoprix or wherever.

Gas is obviously more expensive, but I don't know about cars in France. I think I've seen prices and they weren't that different than in the US. I know England is a different case and I've read even English people go to France to buy cars for that reason.

Anyway, bigboy, you've chosen to spend so much money on expensive hotels -- which is obviously your preference and choice -- so I am having trouble placing your concerns about minor cost fluctuations in context. Just doesn't make sense to me.

Leona & Kristinelane, I think bigboy said 10,000 not 1,000 for the trip. He should be fine for 3 weeks with ten grand!!

Bigboy, wanna take me along??

Have a great trip!

big Boy - where the heck are you staying? We went to France and Italy Last year for two weeks (EUR-USD 1.18-1.24 during our trip) and we probably spent $1700 USD on hotels total? Sure we did not stay in 4-5 stars but mostly 3 and they were all nice. No reason to stay in a 4-5 star hotel. I thought food was cheap (even with the falling dollar) and wine even cheaper.

As far as the EUR-USD. it should remain realitivly constant barring any exrodarary evens until the NOV election. Then you will likey se change. Kerry and Bush have Radically differnt economic policies. if Kerry is in office you will see the dollar rise in the long run, bush it would slighlty decline. This is beacuse of the strategies used to encourage growth.

Keith - 30%, no way-not a chance. The central EU banks will start invesing in Dollars(like the japanese are now) before that would happen

to tpattricco:

Read it again please. He said 10,000 for the whole trip, but 1,000 for food and sightseeing.

Hi bb,

This is not a value judgement. just a comment.

>...1,000.00 Euro
for food, sight seeing etc, etc,<

Our traveling styles are definitely polar opposites. You stay in 4 & 5* hotels and spend less than 35E pp/day on food and etc.

We stay in 2* hotels and spend at least 75E pp/day on food and etc.

Help me here... it's a 3 week trip for 2 people, 9000 euro airfares, hotels, car rental + only 1000 allowance for food & entertainment?

The 10000 total sounds extremely generous, but the 1000 food allowance sounds skimpy.

Ok here is what i was trying to say.
$10,000.00 Total budget. airfare,, car rental,, 4 or 5 star hotels,, 1,000
Euro JUST for food,, sight seeing,, etc,etc, I also said thats how much we are allowing for the Whole trip, if we spend it, we spend it, no worries to us because we have that much in our budget.
I was asking a simple question "WILL THE EURO GO DOWN" thats all. I am not a penny pincher by no means, I spend $10,000.00 on vacation DO YOU?? the fluctuation between the Euro and the Dollar by as little as 5% is alot of money when your talking $10,000,

Based on my low-budget figures above, I don't think 1000 (even in Euros) for food and sightseeing is enough for two people for 3 weeks.

I agree with WillTravel, 1000 is not enough for food and sightseeing for two people.

1,000 FOR JUST FOOD! NOT INCLUDING SIGHT SEEING.

I'd figure AT LEAST 40-50E per day per person for food and drinks. It adds up quick even if you do some picnics and skip lunch some days.

OK~ JUST FOR FOOD... 1000 divided by 21 days, divided by 2 people is less than 25 euro per day. That is WAY low for a 10,000 5-star kind of trip.

No one can answer your question "Will the Euro go down?" because no one knows the answer.