Exchange Rate Euro to Dollar

[grayland]

There is a bit of a bright spot for Americans in regard to currency exchange . For those who do not use the
US Dollar...this thread has little or no interest.


The Euro to Dollar exchange rate today is $1.04 which is a bargain to those of us who have become accustomed to much less favorable rates in the past.

The forecast through the rest of 2022 (and into 2023) is for even lower rates. Most forecasts are showing the Euro at a negative rate... It has been many years since the dollar has been strong against the Euro or at par.

This is good news for those from the U.S. who are planning an upcoming camino as it will translate into much lower expenses.

 

[FourSeasons]

There is a bit of a bright spot for Americans in regard to currency exchange . For those who do not use the
US Dollar...this thread has little or no interest.


The Euro to Dollar exchange rate today is $1.04 which is a bargain to those of us who have become accustomed to much less favorable rates in the past.

The forecast through the rest of 2022 (and into 2023) is for even lower rates. Most forecasts are showing the Euro at a negative rate... It has been many years since the dollar has been strong against the Euro or at par.

This is good news for those from the U.S. who are planning an upcoming camino as it will translate into much lower expenses.

Good news indeed. My first Camino was at $1.34 then $ 1.08 then $1.12 --- now $1.04. Come September it could be lower. I'm very grateful as I'll be doing some booking ahead this time.

 

[Steven Dwyer]

On my first Camino the rate was $0.87 for a euro. hopefully the lower rates will still be there when I am in Europe in October.

 

[Former member 95219]

Great news for USA folks. Not much cheer for the Euro I don’t think for a while! Hopefully airlines serving USA to Europe will use it to really kick start travel post covid with a ‘Europe never been better value’ message.

 

[Former member 95219]

There is a bit of a bright spot for Americans in regard to currency exchange . For those who do not use the
US Dollar...this thread has little or no interest.


The Euro to Dollar exchange rate today is $1.04 which is a bargain to those of us who have become accustomed to much less favorable rates in the past.

The forecast through the rest of 2022 (and into 2023) is for even lower rates. Most forecasts are showing the Euro at a negative rate... It has been many years since the dollar has been strong against the Euro or at par.

This is good news for those from the U.S. who are planning an upcoming camino as it will translate into much lower expenses.

As a non USA resident I still found this interesting. Exchange rates really impact travel choice and it’s reasonable to think think will drive a significant interest in travel to Europe if travel companies promote the message. That in turn impacts flight and accommodation prices. USD doing well versus GBP as well!

 

[Rex]

The US Dollar (USD) is "the best horse in a glue factory", i.e., it's the dominant global currency in a world where all currencies are under economic pressure and all are being de-valued at various rates.
With nearly all global economies still recovering from the pandemic and CPI (inflation) in the USA running at its highest annual level in nearly 40 years, the US Federal Reserve Board is raising short term interest rates; this in an attempt to stem rising inflation. All else being equal, higher short term US interest rates will drive the USD up vs all other currencies (and this principle will hold until the USA is no longer the de facto "reserve currency" of the world).
Since the Fed Chairman, Jay Powell has telegraphed his (and the Board's) intention to raise US interest rates by at least two more 1/2% bumps in May and June, the USD is likely to rise vs the Euro and the Pound Sterling for another six to nine months. Your mileage may vary, but this info might help with planning for those traveling later in the year. Nothing is guaranteed in economics or investing, and Mr. Powell and the Fed Board may face significant political pressure to stop raising interest rates if the US economy starts to teeter into a recession. If they don't follow through with the "pre-announced" interest rate hikes, the USD could well decline vs the Euro and Pound, so watch and listen to what the Fed is announcing over the next few months; or, just take what the market gives you at the time of your Camino and don't think about currency hedges and swaps and just enjoy the peace and camaraderie of your Camino.

Note: following this arcane, but huge market was a part of my pre-Camino career and I still do it out of habit and interest. I don't give advice (and also don't take advice, at least according to my lovely partner of nearly 40 years), so don't take any action without consulting your financial advisor or your doctor. ;>)

Buen Camino.

 

[grayland]

A CAUTION to posters.
Please do not slip into political discussions of any nature.
The forum rules do not allow politics and will be enforced.

Thanks for understanding.

 

[Former member 95219]

The US Dollar (USD) is "the best horse in a glue factory", i.e., it's the dominant global currency in a world where all currencies are under economic pressure and all are being de-valued at various rates.
With nearly all global economies still recovering from the pandemic and CPI (inflation) in the USA running at its highest annual level in nearly 40 years, the US Federal Reserve Board is raising short term interest rates; this in an attempt to stem rising inflation. All else being equal, higher short term US interest rates will drive the USD up vs all other currencies (and this principle will hold until the USA is no longer the de facto "reserve currency" of the world).
Since the Fed Chairman, Jay Powell has telegraphed his (and the Board's) intention to raise US interest rates by at least two more 1/2% bumps in May and June, the USD is likely to rise vs the Euro and the Pound Sterling for another six to nine months. Your mileage may vary, but this info might help with planning for those traveling later in the year. Nothing is guaranteed in economics or investing, and Mr. Powell and the Fed Board may face significant political pressure to stop raising interest rates if the US economy starts to teeter into a recession. If they don't follow through with the "pre-announced" interest rate hikes, the USD could well decline vs the Euro and Pound, so watch and listen to what the Fed is announcing over the next few months; or, just take what the market gives you at the time of your Camino and don't think about currency hedges and swaps and just enjoy the peace and camaraderie of your Camino.

Note: following this arcane, but huge market was a part of my pre-Camino career and I still do it out of habit and interest. I don't give advice (and also don't take advice, at least according to my lovely partner of nearly 40 years), so don't take any action without consulting your financial advisor or your doctor. ;>)

Buen Camino.

Really interesting post. Good to hear info from a pro! Thank you for it putting it in language, laymen like myself can understand! I’m ex travel industry and was also way interested in the topic as it was a key component for travel flows across the world!

 

[FourSeasons]

The US Dollar (USD) is "the best horse in a glue factory", i.e., it's the dominant global currency in a world where all currencies are under economic pressure and all are being de-valued at various rates.
With nearly all global economies still recovering from the pandemic and CPI (inflation) in the USA running at its highest annual level in nearly 40 years, the US Federal Reserve Board is raising short term interest rates; this in an attempt to stem rising inflation. All else being equal, higher short term US interest rates will drive the USD up vs all other currencies (and this principle will hold until the USA is no longer the de facto "reserve currency" of the world).
Since the Fed Chairman, Jay Powell has telegraphed his (and the Board's) intention to raise US interest rates by at least two more 1/2% bumps in May and June, the USD is likely to rise vs the Euro and the Pound Sterling for another six to nine months. Your mileage may vary, but this info might help with planning for those traveling later in the year. Nothing is guaranteed in economics or investing, and Mr. Powell and the Fed Board may face significant political pressure to stop raising interest rates if the US economy starts to teeter into a recession. If they don't follow through with the "pre-announced" interest rate hikes, the USD could well decline vs the Euro and Pound, so watch and listen to what the Fed is announcing over the next few months; or, just take what the market gives you at the time of your Camino and don't think about currency hedges and swaps and just enjoy the peace and camaraderie of your Camino.

Note: following this arcane, but huge market was a part of my pre-Camino career and I still do it out of habit and interest. I don't give advice (and also don't take advice, at least according to my lovely partner of nearly 40 years), so don't take any action without consulting your financial advisor or your doctor. ;>)

Buen Camino.

Um, what??

 

[simply B]

I am so old that my only means of transacting when outside of the USA was with Traveler's Checks.

My experiences over the years have informed me that being in a nation with a declining exchange rate against the USD was NOT necessarily a good thing. Friends in the EU substantiate this opinion.

"How does this affect 'Norteamericanos'?"

Personally, I will await "live" reports from the Camino regarding daily costs from peregrinas/os indexed to home currencies - - say Sept/Oct 2022 before getting excited?

Without being tedious, the current FX situation is rather new in the macroeconomic picture....and in uncharted territory..... since forever.

In the meantime, I have great sympathy for the hardships experienced by my friends in the EU. There is no current "upside" of this situation for them to enjoy. No matter your religious (or lack thereof) persuasion, a sending of some positive thoughts (or material help) to them might be quite useful.

That is all.

B

 

[C clearly]

Um, what??

This...

or, just take what the market gives you at the time of your Camino and don't think about currency hedges and swaps and just enjoy the peace and camaraderie of your Camino.

 

[FourSeasons]

Um, what??

This...

^^^my comment was a joke …. Not taking things so seriously. See my emoji laughing faces?? when on the Camino I like to walk, eat, sleep, repeat. No worries, hakuna matata

 

[C clearly]

^^^my comment was a joke …. Not taking things so seriously. See my emoji laughing faces?? when on the Camino I like to walk, eat, sleep, repeat. No worries, hakuna matata

Yes, I understood, and think that @Rex did, too.

 

[Rex]

Yes, I understood, and think that @Rex did, too.

As my favorite nephew says when I go "full pedant" on him on any topic... [Blank stare] followed shortly by, "Hey, how about them Seahawks?" :>)