# Euro may be too weak for Germany but too strong for others

> The euro has weakened largely because of diverging monetary policy between the U.S. Federal Reserve, which is raising rates, and the ECB, which is injecting hundreds of billions of euros through quantitative easing. The ECB's ultra-loose policy aims to ward off deflation, shore up banks and reflate the economy. The weaker currency benefits euro zone exporters.

- Date: 2017-02-03 · published 2017-02-03T12:00:00.000Z
- Category: macro · region Euro Zone · magnitude low
- Page: https://feedsoft.ai/events/72705-euro-may-be-too-weak-for-germany-but-too-strong-for-others
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker euro against the dollar makes euro zone exports more competitive and tends to lower dollar-denominated prices for imported goods, which can weigh on dollar-based feed commodity demand from Europe. Continued dollar strength would pressure U.S. commodity prices in dollar terms.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-12-04 | [Euro to stay weak, but avoid parity to USD for now: Reuters poll](https://feedsoft.ai/events/27174-euro-to-stay-weak-but-avoid-parity-to-usd-for-now-reuters-poll.md) | -0.1% | -2.4% |
| EURUSD | 2020-05-12 | [What the German court decision against the ECB means for the euro](https://feedsoft.ai/events/53353-what-the-german-court-decision-against-the-ecb-means-for-the-euro.md) | +0.8% | +4.9% |
| EURUSD | 2024-11-06 | [For Europe's markets, Trump's return spells euro pain but bond gains \| Reuters](https://feedsoft.ai/events/5808-for-europe-s-markets-trump-s-return-spells-euro-pain-but-bond-gains-reuters.md) | -3.2% | -3.2% |
| EURUSD | 2017-08-31 | [Dollar Gains On Bets ECB Could Weaken Euro, Strong U.S. Data - Babypips.com](https://feedsoft.ai/events/69665-dollar-gains-on-bets-ecb-could-weaken-euro-strong-u-s-data-babypips-com.md) | +0.8% | -1.3% |
| EURUSD | 2026-10-01 | [The Euro sells off hard as the French-German bond gap widens](https://feedsoft.ai/events/9649-the-euro-sells-off-hard-as-the-french-german-bond-gap-widens.md) | -1.4% | -1.6% |
| DXY | 2016-06-16 | [Weak economy and strong dollar both matter](https://feedsoft.ai/events/9291-weak-economy-and-strong-dollar-both-matter.md) | -0.9% | +0.0% |
| DXY | 2023-05-30 | [US dollar set to be stronger for longer - The Business Times](https://feedsoft.ai/events/36141-us-dollar-set-to-be-stronger-for-longer-the-business-times.md) | -0.5% | -1.4% |
| DXY | 2019-04-22 | [The dollar is too strong for U.S. companies](https://feedsoft.ai/events/59765-the-dollar-is-too-strong-for-u-s-companies.md) | +0.7% | +1.5% |

## Sources

- reuters.com: https://www.reuters.com/article/economy/euro-may-be-too-weak-for-germany-but-too-strong-for-others-idUSKBN15I1N1/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.