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Just for fun, I took a look at GBP/USD and it looks like that is tanking as well. Meanwhile the ruble is stronger than it's been in 4 years. For people in the EU/UK, how has this currency slide impacted your day to day?
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The problem they're having is with natural gas, which they need for winter heating
Petroleum prices also spiked, probably related to the war in Ukraine but I'm not 100% sure.
Last time a major war was in Europe, currencies tanked much more. I'm glad the EUR is as stable as it is while Europe is bombed by Russia.
There is very localised war in Ukraine, which objective impact so far only concerns what Ukraine exports, mostly wheat at this point.
Last time a major war was in Europe, currencies tanked much more. I'm glad the EUR is as stable as it is while Europe is bombed by Russia.
While it has the potential to become one, this is not a major war by any means, it's contained in south-eastern Ukraine.
Most European powers are involved with weapon deliveries and target of economic warfare as well as targetting Russia. Several European states are targetted with cyberwarfare attacks.
The headline is "Gas crisis sends euro back below parity against dollar." Yet the article does not explain how a "gas crisis" leads to a weaker currency. What does lead to a weaker currency? On the EU side, central bank accommodation in the face of inflation ripping higher. Germany recently logged a 37% YoY annual increase in producer prices: https://www.reuters.com/world/europe/german-economic-outlook... And the ECB…
The ECB has its hands tied behind its back, perfect storms like this highlight one of the benefits of a country having its own currency and fiscal policy - the ECB cannot move like UK/US as reconciling Greece/Italy and Germany/Northern Europe can't be done without massive pain for the south.
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It's just a psychological threshold, but because I don't follow currency markets that closely, it makes it very evident to me that the euro has fallen below a threshold, against the dollar, that it never had gone down to.
Never , except when it had.
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The ruble isn't strong. You can't sell meaningfully sell it on the open market. When you buy it, the price goes up. When you can't sell it, the price stays up. https://www.cbsnews.com/news/russia-ukraine-ruble-currency-r...
> When you buy it, the price goes up. When you can't sell it, the price stays up. How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
Average Daily Volume Traded 100 Days: 514
Average Daily Volume Traded 200 Days: 24602
You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
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You can do innovation, the problem is scaling up to the mass market. The EU is supposed to be a massive single market at scale to rival the US and China, and in some ways it is, but it still has a fragments cultural and legal landscape. The gravitational pull of the US on European dev talent is really hard to ignore. Every year the cream of European IT graduates move to the US because that's where the big companies a…
How do you break that circle?
I think it’s intrinsic to the models. The U.S. pays top performers better. But the average European has a more-stable lifestyle. The same regulations and labor protections that grant that stability slow down growth, so apart from an internal restructuring it’s tough to see the situation changing.
Every article about the EUR/USD ratio talks about gas prices. But the current rise of the Dollar started 15 years ago. Over these 15 years, it has become more and more apparent, that software is eating the world. And the US keeps extending their lead in this area. I would not be surprised if that contributes to a long term trend in the EUR/USD ratio. (I'm sitting in a cafe in Germany, writing this text on laptop made…
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> When you buy it, the price goes up. When you can't sell it, the price stays up. How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
USD to RUB Average Daily Volume Traded 100 Days: 514 Average Daily Volume Traded 200 Days: 24602 You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
What am I missing here?