Topic: U.S dollar almost equal to Euro (Read 1470 times)
The Euro currency is negatively impacted by various economic factors such as high inflation rates across the continent, as well as geopolitical tensions such as the ongoing conflict between Ukraine and Russia. Additionally, frequent shifts in the political climate also contribute to the currency's instability.
Truth is USD has gained value over most currencies in the past year and at its peak the exchange rate from USD to EUR was about 0.99 and USD had gained about 14% over the euro in the past year alone. So in a way holding USD was an "investment" if you held it and traded some of your USD into EUR like I did but this is only useful if you have EURO bank account and plan on using that money.
You should really check the dates of the OP in a topic before replying, maybe things have changed dramatically from when this topic was opened.
The dollar has lost ground against the Euro in the last year, so in a yoy period the euro is 6.25% against the usd!
So next time, put more effort into double-checking what you post, rather than making sure how much mandatory text you post!
But this topic is quite nice, after pages of enthusiasm about the Euro dying, now that is back at the same value, the panic is gone, and the EU is not freezing or crumbling the whole topic has gone empty. And there were so many marvelous predictions here about how it will become useless...
Although this is an interesting topic, I keep seeing new replies coming in that are completely irrelevant and not up to date with what's happening; thus, I might as well resort to locking this topic if it continues like this.
A few days back there was a lot of difference between the dollar price and the euro price. What is the impact of the war in Ukraine and Russia behind the fall in the value of the euro? Currently, demand for dollars has increased globally compared to euros. Global demand for the dollar has increased the value of the dollar, which is now felt in the euro. And in our country too, the value of the dollar has increased by several times in the space of a few months. The way the euro has fallen, if it continues to fall like this, the euro will soon fall below the dollar.
What are your thoughts? Will Euro's value fall lower than the U.S. Dollar? One thing is certain though, we're going to go through a tough time in the very near future.
There are number of factors those can affect exchange rate of any currency, such as inflation, trade balance and political stability. Given the current global economic crisis, the value of Euro relative to US dollar may continue to decline, however it is also possible that situation could potentially reverse in future. I believe the key factor influencing the Euro depreciation against dollar is high prices of Gas and crude oil. As European union countries heavily rely imported crude oil for their energy requirements, rising prices of petroleum product can lead to increased inflation and devaluation of currency.
I know it's been a while, but I wasn't tracking the EUR/USD exchange rate. It recently reached its lowest level in over 20 years, with an exchange rate of 1 EUR/0.954 USD. I didn't anticipate it to fall by that much, going well and beyond under $1, and although there was a small recovery today, things are still looking pretty bleak. On the plus side, the price of crude oil and natural gas has dropped significantly over the last week, providing some small relief at gas pumps and in the energy exchange market. Although I haven't seen any significant drop in gas prices, it's still a little encouraging that prices are not increasing any more.
This is putting a huge strain on the European economy while the situation in Ukraine with the recent Putin threats doesn't look too positive.
This is putting a huge strain on the European economy while the situation in Ukraine with the recent Putin threats doesn't look too positive.
The situation in Ukraine, with the ongoing conflict and tensions with Russia, is also a major concern, as it has the potential to disrupt energy markets and geopolitical stability in the region. It is important for policymakers and stakeholders to carefully monitor and respond to these developments, in order to mitigate the risks and promote economic and political stability.
Truth is USD has gained value over most currencies in the past year and at its peak the exchange rate from USD to EUR was about 0.99 and USD had gained about 14% over the euro in the past year alone. So in a way holding USD was an "investment" if you held it and traded some of your USD into EUR like I did but this is only useful if you have EURO bank account and plan on using that money.
You should really check the dates of the OP in a topic before replying, maybe things have changed dramatically from when this topic was opened.
The dollar has lost ground against the Euro in the last year, so in a yoy period the euro is 6.25% against the usd!
So next time, put more effort into double-checking what you post, rather than making sure how much mandatory text you post!
But this topic is quite nice, after pages of enthusiasm about the Euro dying, now that is back at the same value, the panic is gone, and the EU is not freezing or crumbling the whole topic has gone empty. And there were so many marvelous predictions here about how it will become useless...
Look at the quotes - everything is back almost to the pre-COVID state. The pandemic was the first blow that caused many major economies to collapse and governments to print a lot of money to provide an acceptable standard of living for the population. The second blow was the terrorist war unleashed by Russia in Ukraine, and then the economic terror of the EU, I'm talking about oil and gas terror and attempts to manipulate the market. But the world economy is on the mend, the markets are "aligning", the situation is returning to its place. Yes, the global market will not return to a full-fledged normal state "tomorrow", but I think that in 2-3 years, all the consequences will finally disappear. And the euro dollar balance will be within the framework of profitable parities for the two most powerful economies
Truth is USD has gained value over most currencies in the past year and at its peak the exchange rate from USD to EUR was about 0.99 and USD had gained about 14% over the euro in the past year alone. So in a way holding USD was an "investment" if you held it and traded some of your USD into EUR like I did but this is only useful if you have EURO bank account and plan on using that money. Or you can just hold it exchange it back into USD later.
Since on the other topic, we were talking bout the death of the dollar I remembered this gem! 
So what happened, did we again fail to kill the Euro and the Eurozone?
https://finance.yahoo.com/quote/EURUSD=X/
Were all the fearmongers and the illiterate who have never set foot in Europe or can't even pinpoint it on a map wrong again?
Seems like the Euro is back where it was one year ago, the ECB hasn't destroyed the economies or skyrocketed the debt to unpayable levels, no crushing unemployment, and the economy has kept growing even adjusted with the inflation, so what conclusions should we draw out of this?
Maybe not everyone is cut to be an analyst or an economist. Just saying!
It took me a while to realize that the euro has recovered this much; I actually saw it a day or two ago and I had completely forgotten about this thread. Still, it's way lower than it used to be a few years ago, when it was usually ranging between $1.18 and $1.20 per euro, but it's still an improvement for the market. I was actually worried and frustrated when the euro went as low as $0.98/EUR, and it did get me thinking for the worse. Fortunately, it seems that the crisis has been averted, although it could have been a great earning opportunity for those who were willing to take the risk of exchanging currencies back and forth. So what happened, did we again fail to kill the Euro and the Eurozone?
https://finance.yahoo.com/quote/EURUSD=X/
Were all the fearmongers and the illiterate who have never set foot in Europe or can't even pinpoint it on a map wrong again?
Seems like the Euro is back where it was one year ago, the ECB hasn't destroyed the economies or skyrocketed the debt to unpayable levels, no crushing unemployment, and the economy has kept growing even adjusted with the inflation, so what conclusions should we draw out of this?
Maybe not everyone is cut to be an analyst or an economist. Just saying!
No matter in which way you want to spin it, the long-term outlook for Euro remains bleak. And there is a good chance that USD will overtake EUR once again in the near future (this time permanently). For the last 1-2 months, crude oil has gas prices have remained low, and this has allowed the EU to lessen the trade deficit. Just wait until the prices go back to the levels we had in October. As long as inflation rate in Germany remains in double digits, EUR will continue to weaken against currencies such as USD, GBP and CHF.
Since on the other topic, we were talking bout the death of the dollar I remembered this gem!
So what happened, did we again fail to kill the Euro and the Eurozone?
https://finance.yahoo.com/quote/EURUSD=X/
Were all the fearmongers and the illiterate who have never set foot in Europe or can't even pinpoint it on a map wrong again?
Seems like the Euro is back where it was one year ago, the ECB hasn't destroyed the economies or skyrocketed the debt to unpayable levels, no crushing unemployment, and the economy has kept growing even adjusted with the inflation, so what conclusions should we draw out of this?
Maybe not everyone is cut to be an analyst or an economist. Just saying!
So what happened, did we again fail to kill the Euro and the Eurozone?
https://finance.yahoo.com/quote/EURUSD=X/
Were all the fearmongers and the illiterate who have never set foot in Europe or can't even pinpoint it on a map wrong again?
Seems like the Euro is back where it was one year ago, the ECB hasn't destroyed the economies or skyrocketed the debt to unpayable levels, no crushing unemployment, and the economy has kept growing even adjusted with the inflation, so what conclusions should we draw out of this?
Maybe not everyone is cut to be an analyst or an economist. Just saying!
5 years ago the euro position 20% higher in comparison with USD. The exchange rate in my country is currently the dollar is about 8% higher than the euro, many analysts are worried that the decline in the euro will have a big impact on the world economy, many say that the control of the European Union with the euro is too weak to make its value continue to decline.
I think the term "EUSSR" comes from the EU striving to become bigger and more powerful, trying to decide everything. They don't seem to care about what people vote, and go their own way anyway. And they have a long history of taking really good care of themselves, up to the point where they only showed up at work to collect their daily allowance. Those things don't look good when it hits the media.
Reminds me of the recent statements from Führerin Ursula von der Leyen regarding the Italian general elections. She blatantly claimed that Italian people will face "consequences" if they elect the center-right coalition led by Giorgia Meloni. And still, it is Russia who get accused of meddling in the politics and elections in other countries. I never heard Putin making similar comments about "consequences". And despite all the threats from the Führerin, Italians elected Meloni with a large majority.
I know it's been a while, but I wasn't tracking the EUR/USD exchange rate. It recently reached its lowest level in over 20 years, with an exchange rate of 1 EUR/0.954 USD. I didn't anticipate it to fall by that much, going well and beyond under $1, and although there was a small recovery today, things are still looking pretty bleak. On the plus side, the price of crude oil and natural gas has dropped significantly over the last week, providing some small relief at gas pumps and in the energy exchange market. Although I haven't seen any significant drop in gas prices, it's still a little encouraging that prices are not increasing any more.
This is putting a huge strain on the European economy while the situation in Ukraine with the recent Putin threats doesn't look too positive.
This is putting a huge strain on the European economy while the situation in Ukraine with the recent Putin threats doesn't look too positive.
No it's not 
It's literally in your own link:
It's literally in your own link:Quote
Quote
The ECB increased its key interest rate by 0.5 percentage points to 0.0% and plans further hikes this year.
That means the interest went from -0.50% to 0.00%.Well, you are right (that is, you are not human
). The thing is that the first link showed the Euro zone countries with 0.5% but I have seen other sources and I see that the "increase" was from -0.5 to 0%. Lol. So things are worse than I thought. And that the ECB's main theoretical mandate is to keep inflation contained but it doesn't seem to be what they are most concerned about right now.
I think the term "EUSSR" comes from the EU striving to become bigger and more powerful, trying to decide everything. They don't seem to care about what people vote, and go their own way anyway. And they have a long history of taking really good care of themselves, up to the point where they only showed up at work to collect their daily allowance. Those things don't look good when it hits the media.
Yes, by wanting to regulate everything.
For the first time in 20 years, the U.S. dollar has been surging so much that the Euro sinks towards parity with the Dollar, currently trading at €1/$1.01, being almost equal. This is a threat to both Europe and USA, since imports are now much more costly for Europe. The exchange rate is also driving oil prices up, since purchasing a barrel of oil valued at $100, now costs €98-99 for Europe, while a few months ago, the same barrel would cost €80-90 at most.
Goldman Sachs warned that the Eurozone is on the edge of recession, especially with Russia's decision to cut CNG supplies to Europe, resulting in huge surges in prices. While the war in Ukraine hasn't affected USA as much as it has Europe, it has magnified oil and gas prices, punishing European consumers with the surging living costs.
What are your thoughts? Will Euro's value fall lower than the U.S. Dollar? One thing is certain though, we're going to go through a tough time in the very near future.
Sources:
https://fortune.com/2022/07/07/us-dollar-euro-nearly-equal-value-economy-inflation/
https://www.ft.com/content/48c7041f-1fa4-42ee-99f6-4a5955668fb6
Edit: Thanks LoyceMobile, I meant to say that U.S. exports are much more costly for Europe, bad phrasing.
Goldman Sachs warned that the Eurozone is on the edge of recession, especially with Russia's decision to cut CNG supplies to Europe, resulting in huge surges in prices. While the war in Ukraine hasn't affected USA as much as it has Europe, it has magnified oil and gas prices, punishing European consumers with the surging living costs.
What are your thoughts? Will Euro's value fall lower than the U.S. Dollar? One thing is certain though, we're going to go through a tough time in the very near future.
Sources:
https://fortune.com/2022/07/07/us-dollar-euro-nearly-equal-value-economy-inflation/
https://www.ft.com/content/48c7041f-1fa4-42ee-99f6-4a5955668fb6
Edit: Thanks LoyceMobile, I meant to say that U.S. exports are much more costly for Europe, bad phrasing.
I think a recession has occurred in the EURO currency, which was previously well above the USD price. If Russia's war with Ukraine continues, there is a possibility that some countries will experience inflation. In this case, the US is in a safe position, because they have a strong economic resource through trade in war weapons. While Russia is also in a safe position, they have a source of income from oil sales. What about countries - countries that depend on other countries. Maybe the third world war hasn't happened yet, but it's already in the discourse. So that the economic crisis will continue to occur, and the world community will become victims of the political games of several countries.
What else is there to do but believe in the power of verbal interventions? A sharp increase in the key rate to the level of inflation will be a disaster for Greece and Italy in particular and for the European Union as a whole.
Now they're just delaying the inevitable, while the low interest and high inflation are damaging the economy, savings and pensions. I'd much rather rip off the bandaid, get rid of zombie companies that can only exist with low interest, and rebuild a stronger economy from there. 
Short version: ECB can't increase the interest to the level it should be, because countries in the south wouldn't be able to pay their debts and risk bankruptcy.
LOL.. the EU at this point reminds me of the USSR of late 1980s. The real reason why the USSR collapsed was that the "parasite" states such as Tajikistan and Uzbekistan grew in population and demanded more funds and resources from the productive states such as Russia and Belarus. EU is in a similar situation. Countries with budget surplus, such as Germany and Netherlands are funding less productive states such as Poland and Greece. And now the issue is that Germany will no longer have a budget surplus, thanks to their stupid policies in the Russo-Ukrainian war. Same goes with Europe, Germany has done very well, Greece hasn't, that much is known globally right? Well there are many that did well and many that did poorly not just those two and the idea to stay together can't work like that.
The increase in the key rate was carried out as part of the fight against inflation, but the problem for the euro is that it does not work that way. If you want to curb inflation, you must first raise the key rate sharply to a level above the current inflation rate
In the media, they call the increase to 0.00% a really strong effort to fight inflation. That says it all, it's ridiculous!Meanwhile, the interest in the EU is still 0.00%. Central banks deliberately destroy the value of the euro to keep the southern countries afloat, which isn't their mandate.
No. The interest in the EU is 0.5%. It's literally in your own link:I find it interesting that most of the ones calling it like that are the ones that have never actually lived a second in the actual USSR. 
The ones that did know this is just bs.
Yes, of course, that's an exaggeration, but I think you and I have pretty similar ideas about economic policyThe ones that did know this is just bs.
The increase in the key rate was carried out as part of the fight against inflation, but the problem for the euro is that it does not work that way. If you want to curb inflation, you must first raise the key rate sharply to a level above the current inflation rate
In the media, they call the increase to 0.00% a really strong effort to fight inflation. That says it all, it's ridiculous! Jump to: