When is the Euro dollar going to drop?

[OmniAtlas 83]

I'm planning to purchase some very expensive hardware from a certain cockpit manufacturer based in Europe.

 

It is now 1.31 AUD to the Euro.

 

Is this going to keep up?

 

I would appreciate if any economist here would like to shed some light on this subject matter.

 

Thanks.

[Gavin 99]

Keep an eye on: http://www.ft.com

[Simmo W 24]

There's an old joke in finance circles- If I could tell you the future movements, I wouldn't be here, I'd be jetting around the world in my own Lear!

 

Our interest rates still have room to go down, which will reduce our exchange rate. Then again, if they keep 'printing' money in US and Europe, the euro might be worth less.

 

Fun times eh. I think a few countries are deliberately devaluing, good for their exports..

 

[simmerhead 884]

Anybody who say they know I'd ask to put their own money where their mouth is. Nobody knows, and an economist won't make a better bet than a hobo. I've seen a lot of people and businesses go bust because they thought they knew.

[japascoe 97]

[pet peeve] The currency is just called the Euro, there is no dollar in the name, even if the word dollar does originally derive from the name of a European coin[/pet peeve]

 

Like everyone else I don't have any idea. 1.3 AUD to the EUR sounds more or less the same as what it was when I did my internship in Oz, about 2 years ago, so it seems to be relatively stable. I suppose the EUR could drop if we suddenly start printing money here, but that doesn't seem to be a favoured solution to get us out of the crisis at the moment.

[Mickel 42]

If interest rates stay up (which they probably will, relatively speaking, unless things get proper bad here) and while Australia keeps digging holes and selling ore etc, people will keep buying AUD, holding it up.

 

I wonder about all these people buying flash Euro cars. It's fine now, but one of two things will happen:

The world economy will return to some form of growth, the AUD will ease and parts will be ridiculously expensive, or

The western world economy will completely tank and parts will be ridiculously expensive.

Sorry... wandering OT...

 

Can't see the AUD falling much this year. It might spike up briefly if there is a change in Canberra. No, I'm not an economist, and the crystal ball is in the shop, so I will not take responsibity for the outcomes of any action taken upon the 'advice' herein.

[OmniAtlas 83]

I'm liking the AUD to USD right now -- good for all those american edu loans I've taken out! 7.5 interest! And already consolidated. They were extremely high back then.

 

The euro was a ~ 1.20 to AUD a few weeks ago...

 

BTW, for those in Oz, do you use 28 Degrees? LOVE that credit card.

 

[pet peeve] The currency is just called the Euro, there is no dollar in the name, even if the word dollar does originally derive from the name of a European coin[/pet peeve]

 

 

 

I would edit the topic but I can't. Oops.

[japascoe 97]

I'm liking the AUD to USD right now -- good for all those american edu loans I've taken out! 7.5 interest! And already consolidated. They were extremely high back then.

 

The euro was a ~ 1.20 to AUD a few weeks ago...

 

BTW, for those in Oz, do you use 28 Degrees? LOVE that credit card.

 

 

 

I would edit the topic but I can't. Oops.

 

That's OK, I'll live

[Skywolf 788]

Awesome, investing talk on Avsim....nice

[OmniAtlas 83]

They are predicting it is going to drop

 

http://www.bloomberg.com/news/2013-02-07/euro-near-2-week-low-poised-for-weekly-drop-on-draghi-warning.html

[japascoe 97]

They are predicting it is going to drop

 

http://www.bloomberg...hi-warning.html

 

Unless I'm misreading the article, they're actually predicting the exact opposite:

 

“The euro, of the Group of 3, is the place to put your money.”

The euro may strengthen to $1.45 in the next six months, Lee said.

[OmniAtlas 83]

I meant in the first paragraph

 

"The euro fell against the yen and dollar after European Central Bank President Mario Draghi signaled yesterday that further interest-rate cuts in the region remain a possibility."

 

But strengthen to 1.45?? Sheesh.

[Mickel 42]

Isn't the OP talking AUD and the Bloomberg article USD? I was of the understanding that the AUD was more closely aligned with the Euro than the USD, so any easing of the Euro to US rate would weaken the AUD against the USD, but not necessarily strengthen it against the Euro.

 

Speculating about finance stuff is no less of a waste of time than speculating about release dates, and no more harmful. ;-)

[OmniAtlas 83]

Well, I'm glad I held back in spending in euro.

 

It has now dropped from a few weeks ago from 1 euro to 1.30 aud to now 1 euro to 1.23

 

GREAT!