Ok, so here is a totally random thought, haven't full thought it out, but wanted to know if this makes sense.
I will be traveling to Europe in apx. 6 months, and most of the time will be spent in Countries that use the Euro. My personal sentiment is that the EUR/USD will continue to rise over the next 6 months making my poor US dollar weaker then it already is.
so here is the question.
Should i convert what i will be spending into Euros, and hedge the same amount with a long EUR/USD? If the dollar keeps falling(as i predict) then i will have "exchanged" my vacation money at a great rate. If the Dollar does gain some momentum, i will be out of savings, but not out anymore then what i was budgeting for this trip.
How long are you going for?
You are talking about peanuts here if this is a one month vacation. The difference between 1.5700 and 1.6000 on USD5,000 is a whopping $98 (less commission), is it worth going at risk?
Go on VACATION!