Kepp my money in EURO or in USD

**HelloHello** · 02-08-2010, 02:05 PM

anyone?

**Slug** · 02-10-2010, 07:17 AM

Not a lot of currency traders on here. I don't know much, but I know that US interest rates are at an all-time low and that the Euro was relatively recently at an all-time high to the dollar. Both are likely at unsustainable levels. I would convert back. I don't know the exact time you should do so, but most seem to think interest rates will start ticking up by the fall. I have no predictions about what the exchange rate will be during that time. You could always edge and convert back slowly. Sorry I don't know more to give clearer guidance.

**Broken Arrow** · 02-10-2010, 07:32 AM

Yeah, the first thing I think of when it comes to currency trading is just... don't. Don't get involved if you can at all help it.

This is especially the case with the Euro right now, considering all the fear and uncertainty surrounding the European sovereign debts. In fact, there is a record short on the Euro right now that's worth $8 billion dollars. By proxy, it also caused a short term bump to the dollar.

However, just this morning, Germany appears to be having a change of heart regarding assistance to Greece's financial woes. So, now the trends may be reversing.

So, what does all that mean to everyday people? I hope that it helps to point out that attempting to time or even track currencies is, well, difficult to say the least. And then to have to make sense of it all on top of that?

I think the best thing to do for everyday people is to tune out the market noise, and simply ask yourself what financial arrangement will work best for you. Both the Euro and the Dollar are good currencies. I would just stick with whatever you think you will need in the near future (or a little bit of both).

**kork13** · 02-10-2010, 08:13 AM

Do you live in Europe? If you actually live where the Euro is used, I would say there's no problem keeping your money in Euro's. In fact, it's probably a good idea. When I move to Japan this summer, I'm planning to open an account in Yen, so that I can make financial transactions in the local currency (such as for paying rent, utilities, etc.) and avoid at least some of the conversion fees associated.

**Mike75** · 02-15-2010, 11:30 AM

Originally posted by HelloHello View Post

Hi guys,

I desperately need some help. Few months ago I converted my USD savings into Euros and put it in a savings account in Euros. I got good interest rate, however, the EURO has been depreciating against the USD so in the end, the money I made off the interest is still a loss, because the dollar is stronger now. So what do I do with my savings? Should I convert them back to USD and keep them in a USD savings?

I tried to find some USD/EURO forecasts, but I do not know any good trustworthy sources..

I would say, you should convert back. Euro has been falling in comparison of US dollar and speculations say that it might go down further. So, just conver back

**jeffmem** · 02-16-2010, 04:09 PM

I don't feel either one of them are safer at the moment. Many Americans hope the Euro will fail, whether that is going to happen or not is yet to be seen, yes it is falling, but the Euro is also getting closer to becoming the reserve currency, at least their was talk about this last year. But it isn't going to happen in the next 5 years if at all... I don't trade currencies because it is risky, unless of course you know what you're doing, in your case, I cannot tell. The Euro might go back up, who knows... Better to look at what the world economy is doing and the markets in each...

**banditfist** · 02-17-2010, 09:34 AM

Just my opinion here:
The Euro has a close to a zero percent chance to replace the dollar as the reserve currency. Additionally, the whole EU is very likely to fall apart. Greece just lost it's voting rights. Greece is a part of the acronym PIIGS (Protugal, Ireland, Italy, Greece and Spain). All of those countries are in dire straights economically. Germany and France are not in any mood to bailout those countries. The only reason they have is due to the exposure that their banks have to defaults of those countries.

To the original question...
Currency trading is what you are doing. Ever hear of the carry-trade? That is what you are effectively engaging in. Borrowing a currency with low interest rates and investing in a currency with higher interest rates. When the unwind comes, there is hell to pay. It is explosive. I am not a currency trader via the Fx market. I do have a position where I bought an ETF that is bullish on the dollar. This is a speculative bet that the carry-trade would unwind and make the dollar stronger. It does seem that in the last two months that there is not as much of a carry-trade going on and my explosive prediction did not/is not going to happen. But, there is also a trillion dollars out there that the Federal Reserve is going to need to drain out of the economy. Higher interest rates will do this.
If I were you, I would get back into dollars (assuming that you are in the US) and look for assets here in the states. If you need the money, you have to have it in dollars. Thinking that you are going to earn the spread between interest rates here verses abroad and not taking into account the currency fluctuations is a mistake.

Join Date: Jan 2025 · 03-11-2010, 08:55 AM

Canada is looking to be strong this year. They've been a bit more financially conservative than the US and Europe, and the loonie is expected to be worth more than $1 sometime this year. They just didn't do the bailouts and stimulus that the US and Europe did.

**JBinKC** · 03-12-2010, 04:35 PM

Long term my answer would be neither currency. I would favor the AUD or CAD.

**snafu** · 04-11-2010, 06:09 PM

The Chinese RMB is wa-ay under valued BUT the Gov't will not float it's currency until they feel they are in the control seat which may be several years. The unknown is there is to be a change of Gov't soon, those currently in the decision making seats are about to step down...their replacements are largely unknowns.

**GrimJack** · 04-11-2010, 06:19 PM

I say "go to Europe and spend those Euros" - you are going to lose on the conversion back so why not enjoy yourself and go to Paris for a couple of weeks.

If this was your life savings, wtf were you thinking?

**maat55** · 04-12-2010, 04:27 PM

Both currencies are troubled, Euros are down at the moment. The ole rule what goes down must go back up, vice versa. I look for them to trade places again. It's just my opinion.

Kepp my money in EURO or in USD