Euro Surges Against Dollar Amid Shifting Market Dynamics

According to BlockBeats, the euro has surged 12.88% against the U.S. dollar this year, with the EUR/USD exchange rate climbing from 1.0354 to nearly 1.17, marking its highest level since September 2021. This increase is attributed to the decoupling of interest rate correlations between the Federal Reserve and the European Central Bank, alongside a general market shift away from the dollar. The EUR/USD has outperformed the Nasdaq and S&P 500 indices and has nearly matched Bitcoin's gains. The 90-day correlation coefficient between EUR/USD and Bitcoin recently rose to 0.62, the highest since February 2024, indicating a degree of positive correlation. The total market value of euro-pegged stablecoins has grown by 44% this year, increasing from $310 million to $480 million. Circle's EURC stablecoin saw its market value rise by 138% to $200.36 million. Despite the growing demand for euro stablecoins, their total market value remains less than 1% of dollar-pegged stablecoins, which stand at $254.88 billion.