When sellers were in full swing to cope with Amazon membership day, the news that "the euro hit parity with the US dollar" was a flat thunder, which blew the sellers of the European station up from their chairs.

The euro fell to its lowest level in 20 years

According to European foreign exchange market data, the euro fell below parity against the US dollar on the 12th, with the lowest reported at 0.9999, the first time in nearly 20 years.

The depreciation of the euro and the appreciation of the dollar are the result of the combined action of long-term and short-term factors, which will have a huge impact not only on individuals, but also on the world economy.

It is understood that during the two-day Amazon Prime day promotion, the sales volume of the European station was also mediocre.

"Britain usually has about 50-70 orders, and so far today, there are 8 orders."

"This year, the number of PD orders in the European station is similar to that in daily life, and there is no single explosion. The profit is also gradually shrinking, which is too difficult to top!"

Coupled with the exchange rate, which has made it worse, sellers in the European market have suffered heavy losses.

Faced with such a historical event, a seller sent out a soul torture on the cross-border e-commerce Forum: "the euro dollar suddenly fell below 1 against the US dollar, can you survive as a European station?"

Seller A: it fell all the way from 7.8 to 6.7, and the more you do, the worse you get.

Seller B: the euro was lying in the account and didn't dare to mention it. It fell from more than 7 o'clock to 6.7. Without doing anything, it made a loss first.

Seller C: Europe used to be fragrant, but now it's hard to make it in Europe. The exchange rate is really boring.

Reasons for the collapse of the euro

In the past year, the direct reason for the rapid depreciation of the euro came from the expectation of US dollar interest rate hike.

On March 17, 2022, the Federal Reserve announced that it would raise the benchmark interest rate by 25 basis points, which is the first time the Federal Reserve has raised interest rates since December 2018. Since then, the US dollar interest rate hike cycle has begun. Subsequently, the Federal Reserve also announced plans to reduce its $8.9 trillion balance sheet.

Both raising interest rates and shrinking the table mean that Tianliang dollars will withdraw from the market. There is a shortage of dollars in the market. Everyone has strong demand for dollars and relatively weak demand for euros, which naturally leads to exchange rate fluctuations and dollar appreciation.

In addition to the Fed raising interest rates, the most essential reason is the violent geopolitical turmoil.

The persistence of the conflict between Russia and Ukraine has broken the economic stability of European countries and regions, and the capital market prefers the dollar. In addition, the rising prices of oil, grain and other bulk commodities have also increased the market demand for the dollar.

Although inflation in the eurozone is also increasing, due to various factors, the market's expectation of the European Central Bank raising interest rates has fallen. Under the comprehensive influence of each other, there is a situation of "sharp decline of euro exchange rate".

Some experts predict that the euro will continue to fall in the second half of the year. According to the calculation of China e-commerce research center, the sharp fall of the euro will directly affect the price of export products, and the adjustment of the price will inevitably lead to the decline of the whole sales volume. In the future, cross-border export e-commerce will encounter a "cold winter" in the European market.

Can Europe continue?

A seller with many years of experience in the operation of the European station solemnly suggested: "Europe should not be the focus to maintain. Now the global economy is not good, but if it wants to fall, the U.S. and Chinese markets must fall last. As an Amazon seller, the focus must be in North America, Europe can do it, but the proportion cannot exceed 50%."

In a word, the difficulty of the European station is not enough for outsiders. I'm afraid only the sellers of the European station can understand it.