9/14/2022 EURO VS DOLLAR: In this repricing process of the cost of money
AUTHOR: TOWNEWEALTHMANAGEMENT.NET/BLOG 9/14/2022 Towne Wealth Management BLOG:
EURO VS DOLLAR: In this repricing process of the cost of money.
Finally, for the first time in two decades, the price of ‘the Euro traded below the dollar.’ The news shocked currency traders who thought this was basically impossible — even though there have been several signs that it was coming down the pike. Theories vary about what exactly caused the dip, but the most common answer is that Europe's economic well-being is diverging from the United States, largely because of energy, according to Cheddar 8/26/2022. Higher energy costs have then translated to raging inflation in Europe, causing the European Central Bank to raise interest rates, like the USA, 75 basis points, reports Market Watch 9/8/2022. However, on the near term, the two currencies continue to trade on a par at approximately 1 to 1.
Which means, Uncle Sam’s good ole’ American dollar is….
holding up…
‘In this repricing process of the cost of money.’
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Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
The opinions expressed in this material do not necessarily reflect the views of LPL.