Euro to US Dollar 

The exchange rate from the Euro to the dollar has been decreasing lately with the US dollar growing significantly in strength. Three are many reasons behind this change and the sea change in currency rates appears to be a lasting change in the relative value of these currencies that will continue on for some time. This article will discuss some reasons for the currency rate changes between the US dollar and Euro and why they are likely to continue for the indefinite future.

US Dollar Strengthening to the EURO

Weakness in the European economy and growth in the US economy is the basic reason why the US dollar is strengthening while the Euro is decreasing in value. Since the United States is more closely controlled than the Euro zone with one nation and central bank driving the currency policies, the Federal Reserve has been able to move quicker and with more solidarity than the European Central Banks can. This provides strength to the dollar and to various policy movements which have led to improvement in the economy at large.

In addition the United States has better demographics than Europe which has a declining population and large swaths of immigrants who have not been meshing with local populations which have put added pressure on economic growth. The United States has also had a surge in oil production which has driven up economic activity and driven the US economy forward, even in the face of lower gas prices. Finally, the US economy has lower taxes which allows consumers to have more funding that can push consumer spending forward.

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