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Topic: U.S dollar almost equal to Euro - page 7. (Read 1470 times)

hero member
Activity: 1876
Merit: 540
Leading Crypto Sports Betting & Casino Platform
July 13, 2022, 08:19:55 AM
#35
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.
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.
Unthinkable a bit before, a few years ago, but not right now. It's literally how the world is doing right now, after the whole pandemic deal the world went into shit with finance and economy, and why would Germany be a nation that stand straight and even made some surplus when all other nations screwed up?

Of course, it's not a good thing that their economy is not as strong as it used to be, but to be fair to them they are such a strong economy that, I would still prefer to be living there than live where I am. Just because they got worse, doesn't change the fact that most other nations did even worse, so Germany still looks like a lovely amazing nation while going worse. All in comparison basically.
legendary
Activity: 2828
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Jambler.io
July 12, 2022, 03:42:50 PM
#34
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?  Roll Eyes
The Fed has raised interest several times already.

So the limit is not the amount of money printing, is just how much you can raise the rates. If the ECB would have raised it in tandem with the FED....there would have been no consequences?  Cheesy
hero member
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LoyceV on the road. Or couch.
July 12, 2022, 03:22:15 PM
#33
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?  Roll Eyes
The Fed has raised interest several times already.
legendary
Activity: 2828
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Jambler.io
July 12, 2022, 02:54:02 PM
#32
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.

And for a time it will be a good move if they stay silent.
Trying to prop the currency right now is just a waste of time and money, and not everyone wants a powerful euro, what the ECB is waiting is for is the gap in inflation growth that will happen sooner or later this year and for the obvious demand destruction that will come probably late autumn.
That is the moment when, if the consensus is that a stronger Euro is needed the ECB will act, but if they do this soon it will be way too costly and with poor results, so better let it slide for a while and focus on the growth of exports and demand destruction in imports which was a thorn already in European's economy.

All articles tend to point a new rate hike no sooner than September and in my opinion, they shouldn't move sooner than that.

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.

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?  Roll Eyes
hero member
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LoyceV on the road. Or couch.
July 12, 2022, 04:08:57 AM
#31
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 this is the main reason I'm into Bitcoin: it can't be inflated by pressing a button.
sr. member
Activity: 1568
Merit: 266
July 12, 2022, 12:31:24 AM
#30
I never expected this situation that we faced after many years. It shows that things are getting worse for Europe. If it continues like this and the dollar gains a little more value, it means that the crisis in Europe will grow even more.
legendary
Activity: 1232
Merit: 1888
July 11, 2022, 11:56:30 PM
#29
And the Euro is pretty much equal to the USD now.

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.

hero member
Activity: 1456
Merit: 693
July 11, 2022, 03:44:06 PM
#28
And the Euro is pretty much equal to the USD now. Google displays the exchange rate equal right now.


The current rate is at 1.0040 EUR/USD, and lit's falling as we speak. Things are not looking good.

legendary
Activity: 1232
Merit: 1888
July 11, 2022, 07:16:48 AM
#27
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.

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.
hero member
Activity: 1876
Merit: 540
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July 10, 2022, 04:52:58 PM
#26
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.
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.

Maybe from now on it will become more common who knows? But, it wasn't so far. This is why having a weaker Euro is not a shock, we have weaker everything. USD could be getting a bit better for the past few months, but that's not a sustainable thing neither, you just watch, I bet it will get much worse in the future as well when the rates go down. That's when Euro will continue to be better.
legendary
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July 10, 2022, 02:44:44 PM
#25
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


Don't forget that rising rates also means recession if they go too far with it. You can't keep increasing rates so fast and hope that it will work. A little rising can make people spend less and decrease inflation. Too much and you'll crash the stock market, companies will go bankrupt and won't be able to pay their employees and pay back loans. They will simply default on everything which will kill smaller banks. As a result when they finally decide to offer another stimulus package it will be too late because service providers will already be closed for good.
legendary
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July 10, 2022, 01:31:23 PM
#24
This shouldn't be a shock to anyone really. I mean look at what dollar has been doing, and look at what EU has been doing. FEDs at least try to do something, what does Europe plan for this situation? I think this isn't going to really hurt them a lot.

I know that it looks like a bad deal, but considering all the things that’s happening in my nation, I feel like this is nothing at all and shouldn't be considered a big deal. Think about it, we have nations with 50%+ inflation all around the world, and Europe is cryignabotu like 10% at max, most have lower. I get it, you never saw that much in Europe before, but it is still a beast compared to all little nations.
hero member
Activity: 1890
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We are all the pieces of what we remember.
July 10, 2022, 03:33:50 AM
#23
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.


legendary
Activity: 1232
Merit: 1888
July 10, 2022, 02:02:43 AM
#22
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

In this context it is good for the USD which remains the safe haven currency, despite what they print and inflation. Since the US does not have the problems of Europe, they have been able to raise rates and be strong in this context.

The Euro is almost equal to the Dollar and it will not collapse because of this, but the Eurozone economy will be more negatively affected because raw materials such as oil are bought in dollars, so the Eurozone will find it more expensive to buy oil, regardless of how much the price rises in itself, which affects inflation in general and the production costs of companies, making them less competitive.

Regarding your country, your currency is very weak against the dollar and now a little more recently because of the above mentioned that it is still the safe haven currency, and the big winner of all this.

legendary
Activity: 3682
Merit: 1694
July 09, 2022, 11:42:09 PM
#21
Yes it’s very low compared to a decade ago or during the global finance crisis when it was around 1.50 EURUSD. I remember trading forex back then and the ratio was already around 1.30-1.40 or so. To have it reach parity is crazy.

However keep in mind back in 2015 or so it came close to parity also. Low was like $1.05 and people then assumed also that it would break parity but it never did.

copper member
Activity: 1946
Merit: 846
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July 09, 2022, 11:27:27 PM
#20
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
sr. member
Activity: 1064
Merit: 382
Hurrah for Karamazov!
July 09, 2022, 04:25:39 PM
#19
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.
Yea, this is a direct result of how both regions are managing their interest rate.
The Federal reserve hiked it while the European central bank kept it low.

Also, the market considers US dollar safer than Euro. So maybe people are pulling their money out of Euro market in lieu of what's coming?

and maybe civil wars in the Netherlands could be a factor too? The market reacts negatively towards any political fiasco.
hero member
Activity: 2100
Merit: 618
July 09, 2022, 03:58:18 PM
#18
This clearly indicates that European economy is really struggling,  sanctions to the Russian government have really impacted euro badly. But I think it's USD actually which has got really strong recently almost all the currencies are struggling against the USD on the global level. But Russia stopping it's gas pipeline due to sanctions and stopping of other exports imports had really deteriorated Euro's value.
legendary
Activity: 1232
Merit: 1888
July 09, 2022, 12:32:47 PM
#17
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.

hero member
Activity: 1456
Merit: 693
July 09, 2022, 09:15:52 AM
#16
We're pretty much screwed then. It's fairly easy to claim that the sanctions against Russia have backfired by ruining our own economy, while Russia is flourishing by its increase in crude oil sales. Just think that if Germany is willing to take such drastic measures, which is a strong economy by itself, imagine what other countries will have to go through, such as Italy or Greece.

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...
Europe was too dependent on Russian oil, it goes without saying that sanctions were expected to backfire, Russia had taken that into account before starting the war, Europe on the other hand, not so much. Certainly, this seems to be the worst period to enter the Eurozone, in my opinion, joining the Eurozone despite the situation isn't a great idea. Some countries are way better off using their own currency. I'm expecting that the living cost will get more expensive for Croatia soon.
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