The euro-dollar trade has been on a steady decline since the high of 2008, when $1 would get you 1.60 euros. Today, a dollar would get you 1.10 euros, a drop of 32%, and this looks set to weaken further, with parity being a genuine possibility this year.
What has caused this decline? You could argue:
COVID-19 and its impact on the global economy
The Ukraine invasion
The rise in oil
Political stability (or instability), depending on how you look at it
The list is endless, and pinpointing the exact cause from long-term to short-term is impossible.
Analysts are paid to look at global events and work out a theory.
You can also have a theory as an investor, but this has to translate into profit. I like to …