Why is the euro experiencing a steady decline against the dollar?
09/08/2023 •
It is attributed to economic conditions, global oil demand fluctuations, and diverging monetary policies between Europe and the United States. — Based on the majority of comments, the main reasons pointed out for the decline of the Euro against the dollar include low expectations of the Eurozone economy, cooling off inflation in the US, global oil demand fluctuations, and the impact of diverging monetary policies between Europe and the US.
DollarEuroOil MarketGlobal TradeFederal ReserveRate HikesEconomic PoliciesCOVID-19Global InflationBanking System
Stats
| 47% | 38 | |
| 20% | 16 | Mastodon |
| 15% | 12 | Hacker News |
| 10% | 8 | |
| 6% | 5 | Bluesky |
| 2% | 2 | 4Chan |
| 52% | Negative |
| 36% | Neutral |
| 11% | Positive |
| 51% | 😱 Fear |
| 26% | 😡 Anger |
| 12% | 😢 Sadness |
| 8% | 😃 Joy |
| 2% | 😯 Surprise |
| 0% | 🥰 Love |
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Story
- Euro's depreciation against the dollar due to factors such as the Eurozone economy's low expectations, inflation cooling off in the US, lower-than-expected CPI numbers, and global oil market dynamics.
- Pound sterling's consistent fall in value against both the Euro and the US dollar post-Brexit, emphasizing historical trends and trade ties with the EU.
- Diverging monetary policies between Europe and the US, and inflation concerns, are impacting the Euro's trajectory. This includes the aggressive rate hikes by the Federal Reserve (FED) and how they impact third-world countries.
- The value of the dollar could be affected by factors like a loss of its position as the global reserve currency, declining global trade, or potential interruptions in dollar payments for international trade.
- Opinions indicating that American monetary policy has been better than that of other developed countries, pointing to factors like lower unemployment rates and a strong dollar, and how global inflation caused by COVID-19 is affecting currencies.
- The increase in money supply for COVID-19 response, known as "stimulus", is believed to drive up prices, and concerns that the European Central Bank (ECB) might not effectively control inflation due to unsustainable debt burdens of EU member countries.
- Supply and demand dynamics in a global context, suggesting if there's a preference for Euros over US Dollars, it could lead to a higher exchange rate for Euros.
- A comment mentions negative revisions in jobs gains offsetting any positive impact on the dollar, causing it to dip against the Euro.
- Mention of the yen's weak position against the euro since 2008 and its nearing a key level against the dollar.
- Comments and reactions to the currency fluctuations, including personal biases influencing assessments of economic conditions, without explicitly stating reasons for the decline.