Topic: U.S dollar almost equal to Euro - page 7. (Read 1535 times)

What has "happened" to Germany is very bad news and unthinkable not so long ago:

Germany’s much-vaunted trade surplus disappears as import prices surge

Having what was considered the economic locomotive of Europe running a trade deficit, with an increasingly weaker currency, rising energy prices and preparing for gas rationing paints a very dark future for the Eurozone.

The Fed has raised interest several times already.

But it's against the $, and if we have a printing contest the US would win by one hell of a margin.
So, why isn't the opposite happening?  

And everything indicates that it will continue to fall, if the ECB does nothing, which it looks like it will not do, at least until after the summer. In reality, the ECB is breaking its core mandate to control inflation, but it is at a crossroads because with the current monetary policy it does not control inflation, but directly encourages it. However, acting to stop it could end in an economic disaster that would start with the countries of southern Europe, so it is in a catch-22 situation.

There it is: parity! Euro dropped 19% in a year, and interest is still negative. It's almost as if there's a limit on how much BRRR a central bank can do without destroying the currency.

And the Euro is pretty much equal to the USD now.

I would guess that what happened to Germany is not really a single individual deal, it's a common thing for nations these days and that's understandable. Also, we are talking about an economical collapse that is worldwide and probably once in a hundred years type of deal with pandemic, it's not really a common thing.

The problem of having a weak currency in the current context is that traditionally a weak currency favors exports, but if you have a weak currency and very rising costs, such as the cost of energy, what you gain on the one hand you lose on the other.

Germany has closed its trade balance with a deficit and that is very bad news.

Barring a miracle, I see a very dark future for the Euro. There is already talk of a two-speed Euro or what to do with the PIGS. If rates are not raised drastically, it is because of the consequences it could have on the southern countries.

DXY is still likely to continue rising when the FED will announce an interest rate increase to control inflation. Europe is on the verge of entering an economic recession, if this situation persists and there is an energy crisis in the region, in 2023 the European economy will be even more negative.
Not only did the euro depreciate against the dollar, but most other currencies were in a similar situation.
Lists currencies against the usd, the only green that can be seen is the Russian ruble.

https://i.imgur.com/yERfPit.jpg

Sorry guys i dont really understand about this one, what will happen if USD equal to EUR is the EUR gonna collapsing or it will good to USD. because in my country itself USD is strong usually the rate about 14.400 per 1 USD yesterday is touch 15.000 per 1 USD

Politics in the eurozone has become controlling the economy. If winter comes and electricity costs rise, we will see a price of the euro much lower than the dollar.
Brexit, the Ukrainian war, and a lot of difficulties in the eurozone made the currency in its weakest state, not forgetting the rise in interest rates in America that made the dollar stronger and the confiscation of Russian assets with the increase in military spending.

Such great dependence on someone or something is never good, because you never know when that someone will change the rules of the game and leave you stranded. The Russians planned everything long before they occupied Crimea, and regardless of all the warnings from the US that an even bigger war is coming in the future, the EU did nothing to become less dependent on Russian oil and gas.

If someone wonders why they pretended to be blind, then part of the answer lies in the fact that some of the most powerful people in the EU were deeply connected to the largest Russian companies, such as the former German chancellor Gerhard Schröder.

Unfortunately, this information is correct and it will be another big blow for my country, which, according to various independent experts, could not have chosen a worse moment to enter the Eurozone. However, the politics led by domestic politicians is fundamentally anti-national in all segments of life, and the people do not ask anything because it is easier to send a man to the moon than to hold a referendum. A few days ago, the finance minister resigned irrevocably for unknown reasons, and I don't find it strange considering that joining the eurozone will be an even bigger blow to the standard of all citizens - who would want to sit in a hot seat when everything goes downhill...