What does the Euro-Dollar parity mean?

Published

2 years ago

July 15, 2022

Omer Kablan

For the first time in 20 years, the Euro’s value has equalised with the value of the US Dollar and this has caused fears of recession within the Eurozone

The Euro is down almost 12% this year.

It started 2022 strong, but the war in Ukraine started an inflation surge.

So what does this all mean?

It’s important to note that since the Euro was introduced in 1999 it has very rarely dropped below one US dollar in value.

After two decades, the Euro has secured itself as the second most sought after currency in terms of global reserves.

But other currencies like the Sterling and Yen have also lost value against the US dollar this year.

According to Reuters, “partly because of more aggressive U.S. rate hikes have boosted the dollar’s appeal and also as global recession fears have sent investors flocking to the safe-haven dollar”.

And even if the European Central Bank hikes rates, the US Federal Reserve will hike more.

And the lower your currencies value against the dollar the higher inflation.

But all in all economists are saying the ECB will be hiking rates aggressively to fight back.

And as the world recovers from the pandemic, the Euro-Dollar parity may have global repercussions.

Why the meme-stock frenzy is unlikely to repeat

Published

6 days ago

May 14, 2024

Nathan Langridge

GME shares surge 74%, but experts stress a meme-stock frenzy resurgence is unlikely due to fundamental differences in the company’s financial situation.

Australia’s budget unveils a second consecutive surplus of A$9.3 billion, prioritising the critical minerals industry and green energy initiatives to reduce reliance on Chinese supply.

Also, GameStop shares have surged 74%, but experts caution against expecting a repeat of the 2021 meme-stock frenzy. #featured #trending

Money

Why are airlines after the Biden Administration?

Published

6 days ago

May 14, 2024

Nathan Langridge

Major airlines are taking legal action against the Biden administration over a newly implemented rule requiring them to disclose fees upfront.

On this episode of Hot Shots – Major airlines are suing the Biden Administration, AI-piloted fighter jets, SpaceX faces funding challenges, and Apple receives crushing feedback.

Ticker’s Ahron Young & Veronica Dudo discuss. #featured #trending

Money

The mounting pressure on Government spends

Published

7 days ago

May 13, 2024

ticker NEWS

Questions abound regarding the factors fueling this inflation surge in Australia and whether it correlates with the escalating government expenditures.

Concerns extend to how Chalmers navigates the mounting pressure amid discrepancies in spending allocations.

Moreover, as Australians grapple with the reality of rising living costs, the feasibility of cutting spending becomes a pressing issue. Additionally, amidst economic uncertainties, individuals seek guidance on managing stock market risks effectively. #Featured #Trending