Euro Exchange Rate 1.09 to Dollar

yes, definitely falling fast.

$1.16 :sad1:

$1.185

We debated stocking up on euros earlier this year. Never did it. Big mistake. Stay safe everyone.

Wow. I had no idea how high the exchange rate had gone recently. 1.226 as of this morning.

Jim A said:

Wow. I had no idea how high the exchange rate had gone recently. 1.226 as of this morning.

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YIKES! It was around 1.18 when we were there late November. Our bags were definitely not overflowing with purchases on the return trip.

Dollar has been selling off against most currencies. Really picked up after the election. Concerns about increased Treasury issuance, larger deficits, slowing economy and such are hitting the dollar. Wouldn't be surprised to see it continue into 2021 as every time the dollar rallies a bit more shorts pile on. Probably going to be worse for the visitors from the UK as cable has been selling off all year and now that the Brexit drama is over, market is expecting UK economy to slow further. So if you want to hedge your vacation, buy FXE.

I will gladly suffer the going rate just to be vaccinated and back at Le Select sipping Ti Punch!

JEK said:

I will gladly suffer the going rate just to be vaccinated and back at Le Select sipping Ti Punch!

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What he said. :up::very_drunk:

Just noticed a little drop recently. 1.185 right now. High but better than 1.23

Hope it keeps coming down!

1.13 as of today for anyone traveling soon

Saline Man said:

$1.09 Euro or less is par for the dollar when you consider sales tax in the US.

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and tipping for a meal

JEK said:

I will gladly suffer the going rate just to be vaccinated and back at Le Select sipping Ti Punch!

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i prefer the current rate and ti punch. help yourself to other juice. :nerd:

Saline Man said:

$1.09 Euro or less is par for the dollar when you consider sales tax in the US.

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and tip

surely we have an economist out there who could speak to real exchange rates?

personally, I use these real indicators for dollars to buy a euro: $0.85 = studly; $1.00 = good; $1.15 = meh; $1.30 = getting greenish around gills; $1.45 = intense burning sensation emanating from rear quarter.

1.093 at time of this posting.

I must go shopping!!!!

cassidain said:

surely we have an economist out there who could speak to real exchange rates?

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Not an economist but I pay attention to major currency crosses more than most as part of my day job.

As the FX strategists would say, there are a lot of cross currents going on. EUR/USD cross was only at 85 post the EUR launch. Hasn't been back in that range since IIRC. Last period of sustained EUR weakness was back when the world was worried about GREXIT. USD was incredibly weak right after the GFC. That was an expensive time as an American to travel overseas. My European colleagues on the other hand were buying suitcases when they came to NYC to pack all the stuff they bought as prices were so low for them.

Today you have a Fed that has pivoted dramatically. I was convinced last year the Fed was behind the ball on where they needed to be on inflation and the continued easing was flooding the market with liquidity. But the fact that Lagarde was even more timid supported the dollar. For hawkishness, BoE lead the world, Fed and ECB were meekly denying there was a problem. Once Powell was confirmed he spun around 180 degrees. First Fed tightening in year followed by talk of several 50 bp moves. Lagarde was like a deer in headlights in comparison. Inflation up, rates going higher. I would not get too excited about weakening of the EUR/USD rate as that will be a sign of a lot of things going wrong in the world.