🦧 euro really be that low
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🤷 we at parity now
for as long as i remember, if someone asks “how many us dollars is one euro?”
the answer would be “oh yeah, one euro’s like one point one? two? us dollars or something”
well, for the first time in 20 years, we’ve reached parity – one euro is one us dollar
this means usd is “strengthening” relative to euro (a w for usa)
❓ 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
🤔 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…)
👀 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! :)
💡 something im thinking about
🙏 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!
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