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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (70717)	10/30/2007 2:12:59 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

I am not playing the currency exchange rate games there. If I expect a room to cost 100 Euros per day, I better save up N100 Euros instead of NX*100 dollars (N - # of days, X - exchange rate of X dollars per Euro). Maybe the dollar will appreciate against the Euro by the time I make my trip, or maybe it will depreciate, but by saving in Euros, I have taken that factor out of the equation.

To: mishedlo who wrote (70717)	10/30/2007 3:03:41 PM
From: Tommaso	Respond to of 116555

>>>Why not hold the currency you expect to appreciate if you have that strong a view on it?<<< Right. I do. I just realized that I can use the euro travelers checks I bought when the euro was at about 90 cents to the dollar and pay for a hotel room in New York. How much of a discount is that on the hotel room? The euro is now $1.44, so I can pay for a $144 room (if there is one anywhere) with euros that I bought for $90. So far I don't see any hotel rooms quoted in ounces of gold.