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🦧 euro really be that low
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🦧 euro really be that low

Ape of Omaha
Jul 12, 2022
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🦧 euro really be that low
www.wiseape.fyi

🤷 we at parity now

for as long as i remember, if someone asks ā€œhow many us dollars is one euro?ā€

the answer would be ā€œoh yeah, one euro’s like one point one? two? us dollars or somethingā€

well, for the first time in 20 years, we’ve reached parity – one euro is one us dollar

this means usd is ā€œstrengtheningā€ relative to euro (a w for usa)

 

ā“ why tho…

  • europe is facing serious energy crisis as Russia's invasion of Ukraine drags on

    • in response to many european nations imposing sanctionso on the russian economy, many russian state-owned gas giants are choking pipelines delivering gas from russia to germany

  • -0.50% < 1.50%

    • i mean that’s just simple math – fed’s been raising interest rates multiple times this year and eco (european central bank) is just about to start doing that…

    • this makes the dollar more attractive relative to the euro

 

šŸ¤” what now

  • the eur/usd pair has fluctuated quick a bit in the long term, but the euro trading for less than one dollar would mean a heck of a lot more to the markets

    • that’d cause (imo) ripple effects in even stocks

    • ex. us companies that have massive revenue coming from europe. (because that’d mean 100 euros profited overseas converted to the dollar back home would mean, un, not a hundred bucks…)

 

šŸ‘€ im keeping my eyes on…

  • ^uup – invesco us dolar index bullish fund

  • it’s an interesting time we’re living in… i never expected such a (relatively) boring ticker to show such movement – im personally bullish, but then again that’s just one ape’s opinion

 

happy tuesday!

always always feel free to email me (apeofomaha@substack.com) to ask any questions! :)


šŸ’” something im thinking about

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šŸ™ closing comments

all of this is just one ape’s thoughts, but I would love to hear what you want to know about! happy trading!


 

Ask a Wise Ape is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

 

as always, just another ape's thoughts and opinions – i am no financial advisor! (i am no substitute for professional financial services)
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