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🦧 GaaW: gas as a weapon
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🦧 GaaW: gas as a weapon

Ape of Omaha
Sep 7, 2022
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🦧 GaaW: gas as a weapon
www.wiseape.fyi

⛽ can’t 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, we’re even further down, with one euro buying only $0.9881 as of writing, down 13% ytd

  • among many reasons, i’d 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 summer’s over, but that’s 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 isn’t the only place being negatively affected by the current russia-ukraine crisis, but when it comes to currency pairing, it’s all about ā€œwhich is doing is less worseā€ (at least in today’s 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

  • we’ll have to keep seeing, but for now, the us isn’t 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) won’t easily tap into, but it is there, and that affects how the market thinks

 

happy wednesday!

šŸ’” something im thinking about

do y’all see this being useful? (click image)

that's all, folks šŸ’

 
as always, i’m no financial advisor! (i’m no substitute for professional financial services)
 

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🦧 GaaW: gas as a weapon
www.wiseape.fyi
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