The strong euro has begun to "backfire" on European stocks

The euro to US dollar exchange rate has risen to a three-year high, and this strong performance of the currency is putting significant pressure on major European export companies. The continuous strengthening of the euro is not coincidental. The divergence in monetary policy between the European Central Bank and the Federal Reserve is one of the main factors driving the appreciation of the euro. Market expectations suggest that the Federal Reserve may begin to cut interest rates later this year, while the European Central Bank's stance is relatively hawkish, providing support for the euro