# Why is European economy diverging from US and what are the limits to this? | Reuters

> Reuters analysis explains why the euro zone economy is diverging from the US. Energy has been the biggest drag on inflation this year, but crude oil is up 14% since the start of 2024. Expectations of faster euro zone rate cuts have already weakened the euro, raising the cost of imports.

- Date: 2024-04-12 · published 2024-04-12T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/9974-why-is-european-economy-diverging-from-us-and-what-are-the-limits-to-this
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

A weaker euro raises import prices and can add to inflation, while crude's rise will feed into prices in the second half of the year. Both factors matter for feed input costs in Europe.

## Read by commodity

- WTI: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-11-13 | [Why is the euro falling and could it hit $1?](https://feedsoft.ai/events/7554-why-is-the-euro-falling-and-could-it-hit-1.md) | -0.2% | -0.8% |
| EURUSD | 2023-08-31 | [Why traders are ditching the euro - InvestmentNews](https://feedsoft.ai/events/34808-why-traders-are-ditching-the-euro-investmentnews.md) | -2.0% | -3.2% |
| EURUSD | 2024-10-16 | [ECB lowers rates and eyes more cuts as economy sags \| Reuters](https://feedsoft.ai/events/28069-ecb-lowers-rates-and-eyes-more-cuts-as-economy-sags-reuters.md) | -0.9% | -3.0% |
| EURUSD | 2022-07-13 | [ECB is 'attentive' to exchange rate as euro hits parity with dollar \| Reuters](https://feedsoft.ai/events/40709-ecb-is-attentive-to-exchange-rate-as-euro-hits-parity-with-dollar-reuters.md) | +1.7% | +1.6% |
| EURUSD | 2023-03-26 | [Banking stress puts U.S. and Europe on watch for credit crunch \| Reuters](https://feedsoft.ai/events/37074-banking-stress-puts-u-s-and-europe-on-watch-for-credit-crunch-reuters.md) | +1.0% | +2.0% |
| WTI | 2017-11-15 | [The loonie is refusing to take its cue from oil - The Globe and Mail](https://feedsoft.ai/events/68197-the-loonie-is-refusing-to-take-its-cue-from-oil-the-globe-and-mail.md) | +2.1% | +1.6% |
| WTI | 2024-04-17 | [How the rupee’s fall can impact the economy and what RBI can do about it \| Mint](https://feedsoft.ai/events/31013-how-the-rupee-s-fall-can-impact-the-economy-and-what-rbi-can-do-about-it-mint.md) | -2.3% | -7.9% |
| WTI | 2019-04-29 | [What does US$100-per-barrel crude oil mean for the world’s economy? It depends how long the price holds and who you are \| South China Morning Post](https://feedsoft.ai/events/59757-what-does-us-100-per-barrel-crude-oil-mean-for-the-world-s-economy-it-depends.md) | -2.1% | -7.6% |

## Sources

- reuters.com: https://www.reuters.com/world/europe/europes-economic-divergence-with-us-is-real-has-its-limits-2024-04-12/

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