ā½ canāt seem to find a rebound
it was less than a couple months ago when i freaked out at the fact that the euro had reached parity with the dollar
well, now, weāre even further down, with one euro buying only $0.9881 as of writing, down 13% ytd
among many reasons, iād like to focus on energy today
the current environment:
the euro is at a 20-year-low with the dollar and with pretty much most noteworthy currencies
the keyword is energy crisis
as a protest to europe's economic sanctions againt russia, russia's responding back with its own protest
an "indefinite halt to gas supplies" via europe's main energy pipeline
yeah, the summerās over, but thatās even worse
how long the halt will last is uncertain at best
russia could have the power to drag it for as long as winter season comes as an economic threat of sort
all about relativity
surely, europe isnāt the only place being negatively affected by the current russia-ukraine crisis, but when it comes to currency pairing, itās all about āwhich is doing is less worseā (at least in todayās market)
the european central bank (ecb) has only raised rates once (and maybe another one soon) while the fed has raised four times this year already
this makes the dollar a relatively more attractive asset to park money in as opposed to the euro
weāll have to keep seeing, but for now, the us isnāt nearly as hit as europe is by the energy crisis
us does not rely heavily on the russia-europe pipeline
us has its own natural resource reserves, which the biden administration (imo) wonāt easily tap into, but it is there, and that affects how the market thinks
happy wednesday!
š” something im thinking about
that's all, folks š
as always, iām no financial advisor! (iām no substitute for professional financial services)
