The weakening of the US dollar will soon begin to have an impact on the financial performance of European companies, which makes currency changes one of the central themes of the current reporting period. Since the beginning of 2025, the euro has strengthened by almost 13% against the dollar, while the pound sterling has gained about 8%. This creates serious risks for large European corporations, whose significant share of revenue – more than 25% – is generated in the North American market. As a result, their profits may suffer significantly. Experts have concluded that a 10% strengthening of the euro against the dollar can reduce the revenues of European companies by about 2%. Strategists from Goldman Sachs expressed a similar opinion, stressing that the decline in the value of the US currency would have a negative impact on corporate earnings in Europe.
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