Summer travel is picking up this year. If you’re headed to Europe, you may notice that you get more bang for your buck.
Why is that?
For the first time in almost 20 years, the U.S. dollar and the euro have reached parity. Souvenirs will be cheaper for Americans, but Europeans coming this direction may feel the pinch of more expensive goods and services.
The U.S. dollar has strengthened against the euro in part because of differences in monetary policy. The U.S. has been raising rates to slow inflation, while the European Central Bank (ECB) has been hesitant for fear of slowing economic growth. However, with the ECB expected to raise short-term rates this month for the first time in over a decade, euro/dollar parity may be short-lived.
If there’s anything about your investment strategy that you’d like to review, let’s talk. And if you’re headed to Europe, send me a vacation photo!
Gordon Asset Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Euro/Dollar Parity & Summer Travel
July 15, 2022