Let me start by saying at the beginning, what I will say at the end. When it comes to the currencies of countries with developed economies such as Europe and others, it is seen that RPV$ and MPV$, that is, the Real Parity Value Against the Dollar and the Market Parity Value are in great harmony. In other words, sometimes one goes up, sometimes the other goes up, but the difference never gets too big.
This situation can be clearly observed in the Real Parity Value Of Euro Against the Dollar (€RPV$) chart.
Today, the Euro's Market Parity Value against the Dollar is 1.0359, while the Real Parity Value is 1.0532. There is slightly a difference of 1.7% between them.
When we look at its historical past, we see that it fell to a value of -26% in May 2001. The equivalent of this for the Euro/Dollar parity today is 0.74. It rose to 32% in June 2008. This corresponds to 1.39.
Our current chart is a different representation of the previous one. The €MPV$ was 0.8228 in May 2001, and 1.6039 in June 2008. We see that the €RPV$ (Real) in red has been decreasing from its value of 1.20 to its current value of 1.05 for about 20 years. The reason for this is that the European economy is weaker than the US economy. The decline in purchasing power in European countries is due to this downward trend in both €RPV$ and €MPV$.
The last chart is about what may happen to the €MPV$ (Market) in the near future. There were positive values of 12% in February 2018 and 13% in January 2021, and a negative value of -15% in September 2022. In case of an increase or decrease, these rates will be the first targets in the market according to the €RPV$ (Real).
I think the possibility of a decrease is stronger. Therefore, the €MPV$ (Market) can go down to the value of 0.9128, which is the current equivalent of (-15%) for €RPV$ (Real).
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