The Euro is getting crushed by the dollar and I think it’s a great time to pick up some EURO currency. I wrote about hedging my investment portfolio a few days ago with Swiss currency and I’m now looking to buy Euros.
The chart above shows FXE is at 10 years low from a high of 122.86 back in November 2014 to 96.18 recently.
One of my kids lives in Europe and occasionally needs funding from the bank of mom & dad and it’s always a painful exercise to convert USD to EURO but lately, it’s been getting a lot easier and I’d like to hedge for future currency needs.
I’ll likely split my purchases by selling naked puts at a lower strike and buy a block outright in the open market tomorrow. I may accumulate more if FXE drops in value as Europe is an area we plan on spending considerable time after we retire but only if it’s not caught up in a middle of a war.
Trump Tariffs
Trump announced yesterday that he will impose 25% tariffs on Mexico & Canada and additional tariffs on China and if he follows through with those threats, it will cause inflation to spike and force the Fed to hike interest rates at some point in the future which will further cause global currencies to drop in value so I’ll be vigilant and pace my purchases of Swiss and Euro currencies.
The Canadian dollar is at all time lows as well and I’m tempted to pick up some FXC but I don’t have any real use for the currency long term.
UPDATE: Pulled the trigger this morning and bought $1000 of FXE to initiate a small position.
Share The Wealth
Are you picking up any foreign currency at bargain prices? Let me know in the comment below.