Euro trades at two-decade low against the dollar - 1 USD = 1.01 EUR

[Martin Everson]

https://www.msn.com/en-us/money/mar...think-it-could-slide-much-further/ar-AA10Z0ec

How harmful this will be to U.S exporters.

---- quote start

• The euro fell to a two-decade low of 0.9903 against the U.S. dollar.
• Strategists are "definitely biased towards further euro depreciation," says a head strategist at Citi Bank.

The euro traded at a two-decade low of 0.9903 against the U.S. dollar Tuesday morning, with analysts predicting the single currency will continue to slide.

"Our outlook and our trades and our position on the strategist side are definitely biased towards further euro depreciation from where we are now," Luis Costa, head of CEEMEA strategy at Citibank, told CNBC's "Squawk Box Europe" on Tuesday.

"This is the primary point of euro vulnerability now," Costa said.

There are multiple factors at play when comparing the euro and the dollar, working in tandem with the ongoing conflict in Ukraine and mounting inflation across both regions.

---- quote end

 

[JohnnyDoe]

A small price to pay for the freedom of Ukraine

 

[khinkali]

How harmful this will be to U.S exporters.

Europe will still buy their oil and gas.

Maybe EU will start to implement currency controls? In other news today...
https://www.offshorecorptalk.com/th...-the-eu-under-its-new-mica-legislation.38551/

 

[Martin Everson]

Europe will still buy their oil and gas.

Yes they will but a lot of factors outside currency issues in play.

Bulgaria refuses to buy large quantities of US liquefied gas​

https://www.euractiv.com/section/en...-to-buy-large-quantities-of-us-liquefied-gas/

Maybe EU will start to implement currency controls?

Hummm.....I need to look into that before forming an opinion.

I just wonder where the exchange rate will be by Christmas.

 

[khinkali]

I thought the timing was comically coincidental. 1 EUR < 1 USD and also EU want to restrict trading of non-EUR backed tokens.

I removed EUR denominated crypto markets from my project yesterday; they're just not useful for price discovery.

I just wonder where the exchange rate will be by Christmas.

Also, what they're willing to do to defend it and how this will have different affects across the Eurozone. For example German vs Greek residents and businesses. It could get very political.

 

[Martin Everson]

Also, what they're willing to do to defend it and how this will have different affects across the Eurozone. For example German vs Greek residents and businesses. It could get very political.

Also what will ECB do with rates? Yes they will go up but by how much? They are having to go head to head with the Fed hikes.

For money managers seeing the euro fall below the dollar and the dollar paying a handsome interest rate it could just put more pressure on the euro. But a weak euro will prove handy for EU exporters in the short term.

 

[khinkali]

Interest rates, inflation, unemployment. It could get very hard to manage all of these at the same time, across countries with such different risks. Especially with a lack of energy and commodities.

They are having to go head to head with the Fed hikes.

A dangerous game. If the World order does start to change then USD will suck in Euros etc. for some time before the dollar capitulates. Plus North America have enough energy in Canada, production capability in USA and human capital in Mexico to put the walls up. Europe, not so much.

 

[bamboozlethemall]

Time to buy some cheap European Property i suppose with Dollars.

 

[void]

Time to buy some cheap European Property i suppose with Dollars.

I don't know... you should have done this 4 months earlier, and on another continent...

 

[bamboozlethemall]

I don't know... you should have done this 4 months earlier, and on another continent...

Was 4 months earlier the Dollar and Euro at parity?

 

[backpacker]

Time to buy some cheap European Property i suppose with Dollars.

Why? Which one of the 27 doomed member states do you have in mind (to dump your money)?

I cannot think of anything worse than investing in EU-real estate. Check the laws first and you will see that it can be take away from you overnight. Specifically when it is not your primary residency (think: "evil capitalist speculator").
Better look for a different continent.

 

[Paul Tudor Jones]

I cannot think of anything worse than investing in EU-real estate. Check the laws first and you will see that it can be take away from you overnight. Specifically when it is not your primary residency (think: "evil capitalist speculator").

Yes, European governments can just steal your property at will whenever they want. Europe is basically like China, any time the government want they can imprison you, steal everything and murder you. #sarcasm

I swear some people here are living in an alternative reality.

 

[backpacker]

Yes, European governments can just steal your property at will whenever they want. Europe is basically like China, any time the government want they can imprison you, steal everything and murder you. #sarcasm

I swear some people here are living in an alternative reality.

Stick to the topic. This about property and financial assets.
Limiting the discussion to property & financial assets, they do exactly that. Wrong citizenship is already sufficient -> 'Make Russia pay': EU moves ahead with confiscation of frozen assets
Or this -> Land acquisition powers and land ownership restrictions in European countries: evidence review
Or this -> Changes to fair compensation laws after families were forced to give up their land - Impact of the European Convention on Human Rights - publi.coe.int
There are thousands of similar cases, just do some research.

 

[bamboozlethemall]

Why? Which one of the 27 doomed member states do you have in mind (to dump your money)?

I cannot think of anything worse than investing in EU-real estate. Check the laws first and you will see that it can be take away from you overnight. Specifically when it is not your primary residency (think: "evil capitalist speculator").
Better look for a different continent.

Just wanted a small home in some EU Country with low taxes, say Montenegro with 9%

 

[backpacker]

Just wanted a small home in some EU Country with low taxes, say Montenegro with 9%

Montenegro is not EU.
If it has to be EU you are probably best served with either Cyprus or Bulgaria.

 

[tyrexoid]

Just wanted a small home in some EU Country with low taxes, say Montenegro with 9%

Montenegro tax is not 9% it's already 15% from early last year. And employer if local, pays 60% tax for each employee, so the low tax only good for remote workers, in local jobs the employer will simply adjust the salary for the huge tax on his side, or will pay unofficially. Most of the country is cash-based because nobody wants to pay the sick 60%+ employer business taxes on salaries.
But at least it's not in the EU yet.