The causes of the euro decline are puzzling. The economies of the European nations comprising the EEU are improving. Economic growth and consumer confidence is stronger than it has been in years. High unemployment, a problem that has plagued Europe for many years, is declining for the first time. Exports are booming and inflation is lower than in the U.S. and is expected to fall with the decline in oil prices.
Some analysts feel that the euro's problems are in part the result of political factors.
Greece, a country that the EEU rejected for membership 2 years ago has now been recommended for admission by the European Commission and the European Central Bank. Perhaps it is not the fall of the euro, but the rise of the dollar that we should be focusing on. The growth rate for the European nations does not match U.S. growth. Expectations of future interest rate hikes by the Federal Reserve are pushing the dollar up and capital inflows will follow the higher rates. The argument against this hypothesis is that the euro is losing ground to most other major currencies.