• SONAR
  • Buying in Euros? Will ECB QE move affect exchange rate for better or worse?
2015/01/21 13:15:33
aidanodr
Hi Guys,
 
EDITED BIG TIME AT 22.24 GMT 21/01/2015 - NEW INFO:

IF YOU ARE FROM EUROPE using the EURO particularly - Tomorrow, 22nd Jan 2015, the ECB is starting its major QE ( Quantitive Easing ) - basically printing money, devaluing the Euro - I think thats the effect? QE amount is rumoured to be flooding the currency markets with €50bn per month going forward through December 2016. The USA did it, now its Europes turn
 
According to this article: http://www.economist.com/...ng-and-euro-zone 

"QE should have a significant effect on the exchange rate of the euro. By increasing the supply of money base the ECB will contribute to a further weakening of the euro vis-à-vis other currencies such as the dollar, the pound and the yuan, thereby increasing exports and boosting inflation."
 
From this it would seem the € will fall further toward parity with the $. If so then one SHOULD BUY NEW SONAR straight away vs after QE starts?
 
I will be upgrading to the full version of Sonar New. Just making sure.

From a European perspective this QE thing could have a further € to $ erosion not in our favour it seems. 
 
Mario Draghi called on the European Central Bank to make its biggest push yet to fend off deflation and revive the economy by unleashing a debt-buying spree of 1.1 trillion euros ($1.3 trillion). The ECB president and his Executive Board proposed spending 50 billion euros a month through December 2016.

( From - http://www.bloomberg.com/news/2015-01-21/ecb-said-to-propose-qe-of-50-billion-euros-a-month-through-2016.html )
 
2015/01/21 13:17:58
cowboydan
I only paid 112 euro by JRR. I think I got more than you are going to get.
2015/01/21 13:18:43
bapu
There are many reasons for waiting.
 
Saving money anyway you can is probably one of the best (on an individual basis).
2015/01/21 13:29:40
aidanodr
cowboydan
I only paid 112 euro by JRR. I think I got more than you are going to get.



I assume thats with current exchange $/€ rate then less your local VAT?

Will be interesting to see if you are correct over next few days cowboydan :D


2015/01/21 13:32:52
cowboydan
aidanodr
cowboydan
I only paid 112 euro by JRR. I think I got more than you are going to get.



I assume thats with current exchange $/€ rate then less your local VAT?

Will be interesting to see if you are correct over next few days cowboydan :D




That was the current exchange. JRR doesn't charge VAT and I got a 15% discount when I ordered. Nice People at JRR.
2015/01/21 14:20:23
Kylotan
aidanodr
IF YOU ARE FROM EUROPE using the EURO particularly - Tomorrow, 22nd Jan 2015, the ECB is starting its major QE ( Quantitive Easing ) - basically printing money, devaluing the Euro - I think thats the effect?
 
[...]
 
All the analysts are saying it should once again raise the value of the Euro against the dollar in a significant way.

 
This isn't really the place for an economics debate but what you describe is the opposite of what is likely to happen. Quantitative easing creates extra money without creating extra resources, therefore any given unit of that money is worth less. Since nobody is devaluing the dollar tomorrow, each Euro will buy fewer dollars (and pounds, and yen, and whatever). So in the very short term, expect goods and services from the USA, including Sonar, to effectively become more expensive.
 
In the medium term, this could boost the European economy, making it an attractive place to invest, therefore pushing the value of the Euro up relative to the dollar. But that might not happen.
2015/01/21 14:23:55
Andrew Rossa
All I can say is that the price right now is great for users. Upgrade is 112 Euros plus VAT. If I hear one person complain, I'm going to be upset. Also, if you have a VAT ID you can use it. So we are listening to customers rights? :)
2015/01/21 14:24:22
aidanodr
Thanks Kyloltan

Thats why I put Question Marks everywhere ..

In keeping an eye on this I found most analysts saying the opposite - but you could be right where time scale is concerned. 

With respect to economics here - I was more flagging a major event that might have a direct impact on all our personal economics which does matter to some of us recession weary folk :D
 
2015/01/21 14:25:55
aidanodr
Andrew Rossa [Cakewalk]
All I can say is that the price right now is great for users. Upgrade is 112 Euros plus VAT. If I hear one person complain, I'm going to be upset. Also, if you have a VAT ID you can use it. So we are listening to customers rights? :)



Not upset Andrew - It is a great price. This QE thing doesnt damage that for Cakewalks bottom line. All it does is it might mean an even better ( or worse as per what Kyloltan said ) price exchange rate wise for us over the pond in Europe :D

Just not used to near parity $ to € thing .. spoilt for too long :D
 
2015/01/21 14:28:13
Splat
If the stock market crashes again people will end up buying more DAWs methinks as they will have more time on their hands ... 
 
Bitcoins anybody??? I'd like to see that...
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