Do I cash in my EUROS or hold them?

Question

Okay, I sell internationally on eBay. I get many Paypal payments in Euros and I do not have them automatically converted. They are in a "EUROS" holding pen; when the Euro was high, I would convert them immediately. When lower, I'd wait a week or so and gain a percent or two. Now this week, whoa! The Euro is taking a MAJOR nose-dive compared to what I've seen in MONTHS. So here's the question... I've got 1,500.00 Euros sitting in this account. I will need this cash in about 8 weeks. Will the Euro gain again, or do I just cut my losses and get out now?

Answer 1

I saw wait, It took a nosedive, but I think It will steadily rise for the next month or so.  When you hit this period don't get greedy though.  If it rises three percent within the next month take it...If not see how it goes.  

Answer 2

Hold it for awhile. It will go back up. I am assuming you are talking about EUR/USD. The Dollar did break through Support, but with the US economy the way it is it wont last for long. You should take some time to learn a little about currency exchange and how and why it goes up and down.  

Answer 3

I tried to shorten this.

"If" it dropped .06 on you. 1500 x .06 = 90.

You have lost $90, we just say $100 make it even.

I been listening to the Pros and Cons. No one can say for certain what the Euro will do. Many are waiting until Monday before they consider which way it will go.

Some believe it the Scuffle with Russia and Georgia. People move money into the USD for safety. (I not sure, maybe).

Some believe Europe hurt economically too, just the USD got hit first. (I not sure, because the EUR been going up for a long time against the USD).

Some think the market was overbought and it had a little readjustment. (This may be best). If, so, the EUR could start going back up.

But, if it economic realization of the market. The  USD may be seeing some blue sky for awhile.

So, what you do?

Convert now and lose $100?

Wait and maybe lose more?

Wait and it go up and you may get back the $100 you lost?

All you can do is wait until tomorrow and see. Monday before you can do anything. Also, I not think we will see a mass movement like we did Thursday night until Friday morning.

So, hopefully you have time now to think and see if it go down more or it recover and head back up. This as realistic I tell you.

Answer 4

I would sell. While the EUD/USD is probably not at the absolute bottom, it is close enough. If you hang on, you may lose significantly.