Someone in the forum is thinking now is the time to cash out their dollars for Euros. It might be. But, it is not a simple decision. Both market and personal factors set when is best.
Today the exchange rate is US$1.00=€0.95. (That changes by the minute) January 1, 2015 it was €0.826. So, if you cashed out US$1,000.00 in January you got €826. If you cash out today, you will get €951. Is that a good deal? It depends.
According to the graph the trend is a strengthening dollar and a weakening Euro. So, the longer you wait the more Euros you are likely to get for your dollar. Said another way, euros are getting cheaper, losing value. The problems with Greece and the European banks is portending big problems. People are abandoning the euro in anticipation.
So, the deal is like buying gasoline. If prices are going up, you buy gas as often as possible to average your price down. If prices are going down you wait as long as possible, to more quickly average the price down. Over time we get the most gas for the least cost. The same is true for dollars or euros. Of course we, most of us, don’t sell gas, but we do sell currency.
Selling is the opposite of buying. So, we reverse what we do when we sell currency from when we buy. When selling dollars it is buying the other currency. So, when the price is going down we wait to get it as cheaply as possible. But, if we are, and this can get confusing, selling dollars to BUY euros and the euros are what we want and plan to use, like gas, we are buying euros, not selling dollars. So, we are buying euros and their dollar price is going up. We unload the dollars and buy euros often to average our price down.
Another confusing aspect is value, worth, or wealth. If one is trying to conserve wealth, then being in a currency that is losing value is a bad idea. This is why the big kids are moving their wealth in euros into dollars. For years the dollar was losing value and people were abandoning the dollar. Now, it has reversed.
If one does not need euros right now, then staying in dollars conserves wealth while the dollar price, in euros, is going up. Wait and convert when you need euros.