The euro has been gaining steam as investors seek new havens during geopolitical turmoil.
Paywall? https://archive.is/G7MKS
We are still nowhere near the peak. I remember 1 EUR = 1.50 USD times.
A strong Euro makes imports cheaper, but exports more expensive. I don’t know if this is good for us economically right now or not. Overall the best thing would be for the USD to loose its status as the global reserve and resource trade currency.
Overall the best thing would be for the USD to loose its status as the global reserve and resource trade currency.
This is why this is so important. The Eurozone economy is not doing too well right now. So that does not drive up the currency relative to others. So the strength of the Euro has to come from being used more for transactions outside the Eurozone economies themself.
That will only happen if the dollar actually uses stability, which is not yet the case, because the dollar is the global reserve.
In November 2005 the euro was at a similar level to today. In February of 2008 it was over 1.50. YTD we saw a 13.27% gain of the EUR. At that pace it takes about a year to be at 1.50. With Trump in charge and things like an end of the war in Ukraine possible, that could indeed happen.
c/buyeuropean