Post: #1

With the value of the US dollar rising, and other currencies falling, how does this change your international travel plans?

The change was in force before last summer.

Quote:The strengthening of US dollar, which has seen 11 years of weakness, is a systematic trend. The US economy is expected to perform well ahead, so one should brace up for another 14-15 percent rise in dollar until end 2014...says Chetan Ahya, Asia Pacific Economist, Morgan Stanley. (Jun 24, 2013)

http://www.moneycontrol.com/news/fii-vie...ef_article

Quote:The U.S. Dollar Index, which measures the value of the greenback against a basket of foreign currencies, has climbed to its highest level in over four years.

"The momentum of the dollar's advance is unprecedented," said analysts at Société Générale in a note Monday morning.

The dollar has long been the world's top business currency and viewed as a "safe bet" among investors. But the recent run up is partly because traders believe the American economy is improving, especially relative to other parts of the world. This will compel the Federal Reserve to raise interest rates, which is generally seen as a good thing for a country's currency.

At the same time, things aren't looking too good in Europe, so the European Central Bank is starting to do some stimulating of its own. Those measures have resulted in a weaker Euro. The Japanese Yen has also struggled because of the country's ongoing economic problems.

The dollar trend is likely to continue, economists from Capital Economics claim. They expect the dollar "to appreciate further as the monetary policy of the Fed diverges from that of central banks elsewhere."

They predict that one euro will be worth $1.15 by the end of 2016, compared with around $1.27 now. The dollar has already gained more than 8% against the Euro in the past six months. (August 29, 2014)

http://money.cnn.com/2014/09/29/investin...year-high/

Some expect the US dollar to reach par value with the Euro sometime in the future.

So, how is this reversal of fortune affecting your international travel plans?

Post: #2

HERE is a recent chart:



You'll notice that the Euro's fall and the Dollar's corresponding rise has accelerated. The link of this to a successful Republican takeover of the Senate - now controlling all of Congress - is implicated in this .

Post: #3

It's time to immigrate to Australia or somewhere else. For example, Steve Wozniak has already done it. Petrodollar to live just a little bit. Shale oil production is already not profitable, will burst soon shale derivatives and be very bad.

Post: #4

hopefully lower gas prices will mean lower airline ticket prices

Post: #5

How does US dollar affect the Canadian Dollar?

Ours is down relative to US, but if the US is up relative to other places, does CAD follow a similar trend?

Post: #6

Did something change?

That's about how much it affects my travel plans...

Beyond All Seas

"The individual has always had to struggle to keep from being overwhelmed by the tribe.
To be your own man is a hard business. If you try it, you'll be lonely often, and sometimes
frightened. But no price is too high to pay for the privilege of owning yourself." - Kipling

Post: #7

(01-18-2015 10:46 AM)Nascimento Wrote:  How does US dollar affect the Canadian Dollar?

Ours is down relative to US, but if the US is up relative to other places, does CAD follow a similar trend?

Well the CAD gets me more than 12 pesos here in Mexico right now, while last year it was only getting me about 10 and a half.

500 pesos, which is a decent chunk of change here in Mexico (the equivalent of about a weeks worth of groceries - including some high end products - for two people) only runs me about 40 dollars CAD at the moment.

Post: #8

^^ I just took a look and it seems to really depend on the currency you are comparing it to.

For instance, CAD to Mex pesos has been up and down from what I saw since 2014.

CAD to Peruvian currency though has gone down slightly, which sucks if I wanted to go to Peru at the moment.

However, US dollar to Peru has gone up since 2014.

In places that CAD has gone up in the past year, the US has gone up way more.

Good news for most of the guys on here. Hopefully the USD stays up and CAD can recover and match up somewhat.

Post: #9

(01-18-2015 06:27 AM)Dem Wrote:  It's time to immigrate to Australia or somewhere else. For example, Steve Wozniak has already done it. Petrodollar to live just a little bit. Shale oil production is already not profitable, will burst soon shale derivatives and be very bad.

For shits and giggles checked Wozniak's wiki. Married 4 times!

Post: #10

So. Nobodies gonna say the obvious, huh?

WORK FOR US COMPANY, GET PAID IN DOLLARS, BUT IN MOBILE CAPACITY! RELOCATE ABROAD but bank greenbacks.

That's what you wanna do.

Post: #11

(01-18-2015 05:12 PM)Orson Wrote:  So. Nobodies gonna say the obvious, huh?

WORK FOR US COMPANY, GET PAID IN DOLLARS, BUT IN MOBILE CAPACITY! RELOCATE ABROAD but bank greenbacks.

That's what you wanna do.

Until the Euro rises again, then you want to work for a European country and get paid in Euros! So easy.

Post: #12

(01-18-2015 05:12 PM)Orson Wrote:  So. Nobodies gonna say the obvious, huh?

WORK FOR YOURSELF, GET PAID IN DOLLARS, BUT IN MOBILE CAPACITY! RELOCATE ABROAD but bank greenbacks.

That's what you wanna do.

Fixed that for you.

Post: #13

(01-18-2015 10:27 AM)William Windsor Wrote:  hopefully lower gas prices will mean lower airline ticket prices

First time in Europe was 2009. Gas prices dropped significantly around October 2008....several mos later...was able to find a round trip flight from Dallas to Athens, Greece (with layover of course) for $550.00 USD after taxes and fees.

Hoping some good prices come around in a couple more mos....

Post: #14

All my income is U.S. dollar based so it's been fantastic. I've seen around a 15% currency difference from even a couple years ago in most countries I go to. I can easily see it in cost of living. I have my own budget though so it's not like I spend more I just tend to put more into long term investment with whatever is left over.

Post: #15

(01-18-2015 11:19 PM)Brosemite Wrote:  

(01-18-2015 10:27 AM)William Windsor Wrote:  hopefully lower gas prices will mean lower airline ticket prices

First time in Europe was 2009. Gas prices dropped significantly around October 2008....several mos later...was able to find a round trip flight from Dallas to Athens, Greece (with layover of course) for $550.00 USD after taxes and fees.

Hoping some good prices come around in a couple more mos....

Me too. I expect to buy a R/T ticket to Asia in a couple of months. They haven't been showing any sign of moving down yet.

Post: #16

I get paid in pounds rather than dollars, but here in Russia I'm about 60% richer than I was in the summer. That makes a hell of a difference on the spending. It's gotten to the stage where the only prices I check are imported goods. (It's $7 for two peaches.) Everything else is cheap enough that I don't care. I recently paid $20 at a Chinese restaurant for four courses and two beers. I can live with that.

Unfortunately the pound has fallen against other currencies, even in SEA. The North Korean won went from about 220-something to 200-something for £1...

Post: #17

How often are you in North Korea to live the high life tattiemasher?

Post: #18

(01-19-2015 07:42 AM)Que enspastic Wrote:  How often are you in North Korea to live the high life tattiemasher?

You need some serious won to party with the Kim dynasty.

Post: #19

Below 1.15 Euros to the USD, now. The lowest in 11 years, since 2004:

Post: #20

Well the Euro has been overvalued for years, partly due to low interest rates.

Post: #21

(01-18-2015 10:48 AM)Beyond Borders Wrote:  Did something change?

That's about how much it affects my travel plans...

No shit, do people actually plan vacations based on projected currency exchange rates?

Post: #22

(01-22-2015 08:06 PM)monster Wrote:  

(01-18-2015 10:48 AM)Beyond Borders Wrote:  Did something change?

That's about how much it affects my travel plans...

No shit, do people actually plan vacations based on projected currency exchange rates?

I think it can sway decisions in come way.

The Canadian dollar is equal to 0.77 US cents right now. That alone has got me looking into going to Canada this year.

Post: #23

(01-22-2015 08:06 PM)monster Wrote:  

(01-18-2015 10:48 AM)Beyond Borders Wrote:  Did something change?

That's about how much it affects my travel plans...

No shit, do people actually plan vacations based on projected currency exchange rates?

Sure do. It means a lot especially when you get paid in USD. I was planning to leave Serbia briefly but now decided to stay because of the currency exchange rate. It's like getting offered a 20% raise on top of the already low cost of living here.

Post: #24

(01-18-2015 06:23 AM)Orson Wrote:  HERE is a recent chart:



You'll notice that the Euro's fall and the Dollar's corresponding rise has accelerated. The link of this to a successful Republican takeover of the Senate - now controlling all of Congress - is implicated in this .

This is not related to US congress being controlled by one moderate group vs the other. It is partially related to activity of the Federal Reserve banks (a private entity), the European Central Bank, and fluctuations in global markets. These groups are minimally influenced by Congress. The strength of the Dollar is inextricably linked to the decline in the European market activity.

There is low confidence in the Euro as they plan to increase the amount of Euros in circulation by one trillion euros. Furthermore, activity in the unstable Greek economy is influencing the Euro.

Google a graph comparing the USD to the British pound. The dollar is mostly getting strong compared to currency that is experiencing low confidence/bad market (euro and yen). Not so much the pound.

Post: #25

PittFighter wrote:

Quote:This is not related to US congress being controlled by one moderate group vs the other. It is partially related to activity of the Federal Reserve banks (a private entity), the European Central Bank, and fluctuations in global markets. These groups are minimally influenced by Congress. The strength of the Dollar is inextricably linked to the decline in the European market activity.
_ _ _

YES, market timing is utterly unrelated to change in political control of a record spending government! WHAT WAS I thinking! IGNORE THE CHART. Ignore the valence.

After all, QE for the Euro has only been talked about for months and years. I am so utterly and completely WRONG!

Sleep secure in the knowledge that political and fiscal policy change has no impact on investment flows and directions whatsoever!