With the dollar strong against the Euro, I was wondering, since we're taking a European river cruise next Aug., is it wise to buy Euros now or wait until next year.
Aha, that is the greatest speculation of all — currency futures! I assume you’re booking the trip through a US travel company. They will want payment in dollars. But probably you’re talking about spending money in Euros. Well, here’s what to consider:
The dollar could be stronger by then (meaning it will buy MORE Euros) for a lot of reasons:
1. The Fed could raise rates, making dollars more attractive as the European Central bank tries to keep rates low to spur growth.
2. The path of Brexit — the exit of Great Britain — from the European community could further shake confidence in the Euro.
3. There could be a financial crisis in Italy (as soon as next week!) generating concerns about the Euro.
4. France will have elections, and the results could generate concerns about French participation in the EEC.
Now what could make the Euro stronger? It’s hard to imagine! But when everyone knows what’s wrong, sometimes the currency can take a bounce.
One more important thing about speculating with your spending money on this trip. Unless you’re changing a huge amount of dollars, there will be fees for getting paper Euros. You’re much better off finding a credit card that does not charge a transaction fee and charging your purchases at the then-prevalent exchange rates. Or, WITHDRAWING EUROS IN CASH from an ATM INSIDE A LARGE BANK using a debit card.