⛽ 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 “which is doing is less worse” (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!

💡 something im thinking about

that's all, folks 🐒

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

buy me a coffee :)