Basically, people are expecting the Fed to have a stronger response to inflation...

		atwood22 on July 11, 2022 \| parent \| context \| favorite \| on: The euro has tumbled near parity to the US dollar Basically, people are expecting the Fed to have a stronger response to inflation compared to the ECB. The Fed is expected to have a stronger response to inflation than most of the world, which is why the U.S. dollar is so strong against other currencies as well.