- Joined
- Jun 26, 2012
- Messages
- 30,709
- Reaction score
- 37,661
https://www.wsj.com/articles/euro-nears-20-year-low-against-dollar-on-recession-fears-11657020135
All the headlines are of the variety of Euro tumbling vs the dollar, but wouldn’t that also imply USD is climbing vs the Euro? They’re almost back to parity now.
Ukraine war on their border preventing the ECB’s ability to raise interest rates as fast as the American fed is, resulting in their inflation being worse. They’re only doing .25% bumps, not the .5 and .75 we’ve seen in America.
Edit- Bloomberg was the one saying it was war in Ukraine’s fault, but a few good posters pointed out (which does seem more accurate) that raising rates too much would cripple some of the poorer economies like Italy. So that’s their limiting factor, and just another case of media trying to blame everything on Ukraine war
2 takeaways for my non global finance brain- good time to plan that European vacation with parity on the horizon (if you have savings account money) , and this also kinda flies in the face that the American inflation is all Biden and the Dems fault when the rest of the “western” world is having it even worse.
All the headlines are of the variety of Euro tumbling vs the dollar, but wouldn’t that also imply USD is climbing vs the Euro? They’re almost back to parity now.
Ukraine war on their border preventing the ECB’s ability to raise interest rates as fast as the American fed is, resulting in their inflation being worse. They’re only doing .25% bumps, not the .5 and .75 we’ve seen in America.
Edit- Bloomberg was the one saying it was war in Ukraine’s fault, but a few good posters pointed out (which does seem more accurate) that raising rates too much would cripple some of the poorer economies like Italy. So that’s their limiting factor, and just another case of media trying to blame everything on Ukraine war
2 takeaways for my non global finance brain- good time to plan that European vacation with parity on the horizon (if you have savings account money) , and this also kinda flies in the face that the American inflation is all Biden and the Dems fault when the rest of the “western” world is having it even worse.
Last edited: