U.S./German Yield Spread vs. U.S./Euro Foreign Exchange Rate

U.S./German Yield Spread vs. U.S./Euro Foreign Exchange Rate This chart shows the Euro vs. US Dollar (EUR/USD) and how a wider U.S./German yield spread corresponds to a stronger US dollar.But if the Fed cuts rates this year, is it good for the Euro?

Why Is the Dollar So Strong Against the Euro?

Why Is the Dollar So Strong Against the Euro? Because widening yields between the dollar and euro continue to support the value of the dollar against the euro (R² = 0.61).

U.S./German Yield Spread vs. U.S./Euro Foreign Exchange Rate

U.S./German Yield Spread vs. U.S./Euro Foreign Exchange Rate This chart shows how a wider US/German yield spread usually corresponds to a stronger US dollar, because a strong US economy means higher US rates (R²=0.61 from 2005 to 2019).