Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
How European ETFs Are Being Hammered by a Strong Dollar
In this episode of The European Economy Podcast, Lucas and Luna examine the sharp selloff in European equity ETFs during late June 2026. With the VGK down 1.3% and the EZU losing 2.4% in five days, they trace the culprit to a surging US dollar—the trade-weighted index hitting 120.4—and the euro slipping to 1.15. They break down why dollar strength is a double blow for European stocks: it squeezes exporters' earnings and drives capital back to US assets. Lucas points to the diverging performance of German (EWG -2.2%) and Italian (EWI -3.0%) ETFs to show how the pain is uneven. The…
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