# Low Euro



## the_apprentice (Jan 31, 2013)

Does anyone have any plans regarding the current low Euro? Whether it's planning a trip to Europe this summer, buying Euros, hedging real estate internationally, etc.


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## jerryhung (Mar 28, 2011)

Going to Turkey and Europe where our CAD actually gained against (vs. loss vs USD)


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## MoreMiles (Apr 20, 2011)

I am more concerned about low Cad$. Our spending power and assets have lost almost 30% just in a year. We used to be able to buy American houses at par. Well... not anymore.


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## james4beach (Nov 15, 2012)

That's right, we're getting poorer in Canada. The central bank deliberately is weakening our currency and everyone in the country (well, anyone with POSITIVE net assets) is becoming less wealthy.


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## gardner (Feb 13, 2014)

the_apprentice said:


> plans regarding the current low Euro?


Buying opportunity for ZEA maybe, though it looks to be quite strong so far this year.


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## none (Jan 15, 2013)

james4beach said:


> That's right, we're getting poorer in Canada. The central bank deliberately is weakening our currency and everyone in the country (well, anyone with POSITIVE net assets) is becoming less wealthy.


Not if the majority of your cash is in US$ CA-CHING!!!!


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## ElliottFXTrader (May 18, 2016)

EUR/USD will go even lower, EUR/CAD will be lower as well.


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## mordko (Jan 23, 2016)

james4beach said:


> That's right, we're getting poorer in Canada. The central bank deliberately is weakening our currency and everyone in the country (well, anyone with POSITIVE net assets) is becoming less wealthy.


False. The bank is only concerned with inflation and the rates have been on hold for a very long time. The currency has been weakened because:

- prices of our exports dropped
- Government is printing CAD at an even faster rate than it promised in the elections
- US has raised interest rates and is supposed to do so again


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## mrPPincer (Nov 21, 2011)

mordko said:


> False. The bank is only concerned with inflation and the rates have been on hold for a very long time. The currency has been weakened because:
> 
> - prices of our exports dropped
> - Government is printing CAD at an even faster rate than it promised in the elections
> - US has raised interest rates and is supposed to do so again


mordco, take a look at the time stamp 

You are responding to a post made in 2015, prior to the federal election.
The BoC dropped rates twice in 2015, from 1% to 0.75%, to 0.5%


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## fraser (May 15, 2010)

Yes. Planning on six weeks in Southern Europe this fall. Maybe eight if I can get buy in from the missus. Probably Greece/Turkey. Maybe Croatia.


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## mordko (Jan 23, 2016)

mrPPincer said:


> mordco, take a look at the time stamp
> 
> You are responding to a post made in 2015, prior to the federal election.
> The BoC dropped rates twice in 2015, from 1% to 0.75%, to 0.5%


Oops... yeah, Ok. Then again it wasn't the BoC conspiracy to undermine CAD but the overall Canadian economy.


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## fraser (May 15, 2010)

I don't think that the euro is particularly low and I strongly suspect that the CAD will be lower by Sept/Oct when we plan to be there. We have seen the euro as high as 1.66 and as low as 1.31. So at 1.45ish it is right in the middle.

My idea of low would be in the mid 1.30's


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## the_apprentice (Jan 31, 2013)

Seems that we are on the same page Fraser. When I started this thread (April 2015), the Euro was quite low relative to the Canadian Dollar. Here is the 5-year chart of the EUR > CAD Currency Chart:









I found it strange that there was no talk about the Euro. Maybe the users of this forum don't like to invest in Europe or the European Currency? Just speculating.

While I had no additional funds to invest at that time, I did think it was a great opportunity to exchange for Euros. I was browsing for real estate while in Europe during the Summer of 2015 for my own curiosity. I discovered exceptional value in their real estate for obvious reasons, especially for those who are looking for bargains relative to our Canadian homes or for 'snowbirds' looking for a secondary home.


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## fraser (May 15, 2010)

We spent time in Greece last fall. Euro was about 1.45 then. The big benefit was that tourism was down significantly. Prices were down and we really noticed it. Doing the same this year so I hope the CAD does not tank before then.


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## the_apprentice (Jan 31, 2013)

fraser said:


> We spent time in Greece last fall. Euro was about 1.45 then. The big benefit was that tourism was down significantly. Prices were down and we really noticed it. Doing the same this year so I hope the CAD does not tank before then.


Good luck. Lets hope it works in your favor. I'll be following closely too.


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## officematt (Oct 16, 2011)

I think tourism may have been down in Greece due to more than the euro...how about off season, refugee crisis, etc. 

I spend time in Europe twice a year, often with a flight and a few days in Amsterdam (and on the way out) and then off to somewhere in Germany or elsewhere in Europe. The exchange rate is not a big consideration although I do budget accordingly and am mindful of the costs for hotel rooms as a result. However, I find that in Europe your money goes much further than it would here in Canada, largely because you are more often than not buying a quality product, be it food at a restaurant, or if buying beer and wine, something that is also much better than anything in Canada but also less taxed as well. You are more likely to get a better meal at a three star restaurant in Europe than a five star in Canada, and for a much better price.


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## fraser (May 15, 2010)

That is why we plan to go back to Greece (and probably to Turkey) this Sept/Oct. We avoid the islands where there are refugee issues.


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## officematt (Oct 16, 2011)

fraser said:


> That is why we plan to go back to Greece (and probably to Turkey) this Sept/Oct. We avoid the islands where there are refugee issues.


Why don't you tell us about your trips to Greece. You seem to really like talking about it...


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## RCB (Jan 11, 2014)

I'm hoping it drops further against the CDN$. I'm in the middle of booking hotels in Ireland and Scotland for this summer. Much more expensive than in North America. Transportation is far less expensive than North America.

I'm wondering how purchases of European equities works online. I'm with Scotia iTrade and the best I can do (that I know of) is British ADRs on NYSE.


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## BigMonkey (May 31, 2016)

Yes. I am planning on backpacking through Europe sometime this Summer. I have no idea what the exchange rate is like, but will likely go through with the trip regardless of our devalued CAD. I will probably adjust the type of food and where I am staying to compensate for the devalued exchange rate and to make sure I stay within my comfortable expenditures.


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## officematt (Oct 16, 2011)

BigMonkey said:


> Yes. I am planning on backpacking through Europe sometime this Summer. I have no idea what the exchange rate is like, but will likely go through with the trip regardless of our devalued CAD. I will probably adjust the type of food and where I am staying to compensate for the devalued exchange rate and to make sure I stay within my comfortable expenditures.


Why don't you just budget for your trip???


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## kcowan (Jul 1, 2010)

The C$ has held up pretty well against the Euro. June 2014 it was .68 and now it is .68 is spite of much interim variability.


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## lonewolf (Jun 12, 2012)

Mac test how many Euro to buy big mac how many loonies to buy big mac. Have not done math this is the so called standard test to see if currency goes further in another country.


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