Quote:
Originally Posted by Rhesus
All the signs show the opposite of what you're saying. What do you think a .75% cut does to a currency that now only has a 2.25% interest rate? Compare this currency to a domain that gets a Google ban - the yield is almost zero, and trust in it going to be yielding more or even stabilising is absent as well.
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so what you're predicting? 1.70 vs ?? more?
Quote:
Originally Posted by BradM
Certainly not, but I have common sense. That dictates what everyone who IS an expert is saying: Which is the US dollar is going to sink more against other currencies.
I'll bump this when I am right in a few weeks.
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well we don't know what's the goal of this investment, long term, mid term, or short term.
but still, I hardly see a reason for someone living in the US and earning in the $US to invest in Euro.
also, you say the dollar will sink against all other major currencies, so why buy exactly Euro? Because all the Europeans here bitch the loudest about the dollar getting weaker and weaker?
In past 4 years or so there have been currencies that appreciated even stronger than ? against the USD. That would be the currencies of the new EU members, like Poland or Czech Republique (I think). I guess a wise decision could be investing in the currencies of the even newer EU countries. Their GDP grows much faster than of the "old Europe" and history has shown that all countries which are going to implement EURO, appreciate against it.
anyway, I see no real reason for an American to invest in EUR, I bet there must be some better investments available.
Also, remember the exchange fees. If he wants to change $50k USD into EUR where the current rate is 1.56, hoping it will fall to 1.65 or so in the couple next weeks, then not sure if that's such a good idea.
if he thinks that in a few months perspective, the rate will go towards 1.80 or so, then it might make sense, but I honestly doubt it will be the case.
I don't expect the rate at the end of the year to be significantly worse (for the dollar) vs EUR than it is now. Obviously I am not an exert and no one here is. I guess someone needs to bump this thread in December and we will see who was right.