Sure and begorrah, it is time to give an update on the trip to Ireland as it is only a little over 2 and 1/2 months away. Refer to my post on 1/15/09 I Have Eyes for Ireland, and I'm Smiling. In that post I speculated on the best way to make use of the exchange rate.
My bonnie lass and I have already paid for approximately 1/2 of the vacation including airline tickets, rental car, 4 nights' hotel stay in Dublin, and a few bed and breakfast establishment deposits. Also, much to my delight I bought roughly 1/2 of the Euros we will need last January. Based on the projection below along with some other factors, I decided to hedge my Euros.
The forecast calls for a higher Dollar cost against the Euro peaking in June and then falling again to comparable levels in August. Here's what has happened so far:
The maximum savings I could have achieved is .136 cents (June 1.416 – Feb 1.28). However, so far I have gained .09 (1.416 -1.3262). That's $45 for every $500 exchanged into Euros, enough for dinner and a pint of Guinness.
But, will the .09 cents rise or fall in the next few months? Here's the latest forecast:
According to this forecast my gain may only end up being only .025 cents (1.351-1.326). That's $12.50 for every $500 exchanged into Euros, still enough for a pint of Guinness.