You can see in the last – the monthly – that back in 2012 for every dollar you would have got 85 euro cents as opposed to now about 64/65 cents. A massive difference but we can no longer hold onto that memory.
We are now in a very different environment.
Reality is, you will not a great rate right now but the risk as you can see in the monthly is that you might only get 50/55 cents in the coming months. That will significantly pump up the cost of those French vinos, Spanish cheese and Swiss chocies.
When I buy foreign currency, I buy in tranches – sort of reducing risk and averaging out my buy price. I never seek to buy at the low.
I also do not buy through the big banks as your so called friendly banks are not so friendly and take advantage again of the unsuspecting. Nasty.
I use a recognized intermediary agency and save myself in the order of 4-5%. If you google something like ‘’international money transfer’’ then a list comes up. Do your research as some of these are not so nice either. It is generally easy to open an account and the process is easy – depending on who you use. You can open dummy accounts and try them out.
Of course, our smart traders will deal in futures and collect the euro at the end of the contract.
The Aussie could firm a little over the next week or so, but I sense by not a lot, so I will build up my euro reserve.