monitoring the influence of the exchange rate on stocks
Are stocks moving on the back of EURUSD fluctuations?
Latest data: 23-03-2026
Looking at the relationship between the EURUSD rate and European stocks:
In the last month
their correlation has been 0.79: a stronger USD is a headwind for the stock market
Over additional timeframes
in the past 3 months their correlation has been 0.46: a stronger USD is a headwind for the stock market
year to date their correlation has been 0.57: a stronger USD is a headwind for the stock market
in the last year their correlation has been 0.57: positive stock market performance is being supported by a cheaper USD
IntroFluctuations in foreign exchange rates can significantly impact equity markets, both positively and negatively, depending on the currency's movement, the role of additional influencing factors and the investor's perspective.
Impact: detailsA weak currency can boost exports, potentially increasing the exporting company earnings and benefiting the stock market overall, while a strong currency can have the opposite effect. Even more important, currency movements can either amplify or erode returns on international equity investments, depending on whether the currency appreciates or depreciates against the investor's home currency.
Market implicationsIn normal market conditions, a weaker EUR typically supports EU equity earnings and makes European stocks cheaper for international investors, attracting capital flows that push stock prices up. Conversely, a very strong EUR might be detrimental to European stock prices.
US equities & EURUSD
US stocks & the EURUSD
monitoring the influence of the exchange rate on stocks
Are stocks moving on the back of EURUSD fluctuations?
Latest data: 23-03-2026
Looking at the relationship between the EURUSD rate and US stocks:
In the last month
their correlation has been 0.79: a stronger USD is a headwind for the stock market
Over additional timeframes
in the past 3 months their correlation has been 0.66: a stronger USD is a headwind for the stock market
year to date their correlation has been 0.66: a stronger USD is a headwind for the stock market
in the last year their correlation has been 0.76: positive stock market performance is being supported by a cheaper USD
IntroFluctuations in foreign exchange rates can significantly impact equity markets, both positively and negatively, depending on the currency's movement, the role of additional influencing factors and the investor's perspective.
Impact: detailsA weak currency can boost exports, potentially increasing the exporting company earnings and benefiting the stock market overall, while a strong currency can have the opposite effect. Even more important, currency movements can either amplify or erode returns on international equity investments, depending on whether the currency appreciates or depreciates against the investor's home currency.
Market implicationsIn normal market conditions, a weaker USD typically supports US equity earnings and makes US stocks cheaper for international investors, attracting capital flows that push stock prices up. Conversely, a very strong USD might be detrimental to US stock prices, unless a recession is ongoing: in fact, the USD and US stocks might move higher together as international investors seek safety in US assets.