How much would a EURO denominated account be worth 8 weeks from now?
Question by westphalia1: How much would a EURO denominated account be worth 8 weeks from now?
If i open a foreign bank account and convert, say-$ 1,000.00 USD into all EURO’s how much would that $ 1,000.00 appreciate 8 weeks from now? Or would’nt it? PLEASE NO FOREX
Best answer:
Answer by Webber
I don’t think anyone can tell you for sure. If you are planning to go on vacation and this is the purpose of your question, I would bet against USD considering current market conditions, so if vaca spending money is your purpose, I would do it regardless.
It is highly anticipated that the Fed will cut the interest rates by the end of this month and I personally think in 8 weeks, the base rate will go down further 5-6 basis points (1.5%). Rate cuts usually are followed by drop in the currency.
While as I mentioned above, I cannot (nor anyone else) tell you how much it will be worth, here are a few things to consider:
1. currency conversion involves bank exchange rates which are usually unfavorable to the customer (i.e. wide spread between bid/ask price).
2. Depending on how you are going to make a USD deposit to your EUR account, expect fees (wire out/may be in as well), some banks charge comission and/or transaction and/or minimum fees
3. You mentioned “no FOREX”, but one thing to consider, the Dollar, especially during its weakness means rise in US exports. In foreign countries, importers of the US goods have to settle those import invoices, usually at the end of months and usually in USD currency. So all other market forces aside,
this helps USD to go up a little towards the end of month, as demand for the currency is higher at the end of a month.
