In what currency should you store money in 2022, dollar or euro?

Almost everyone in their life has encountered a situation where they have to lose money due to a wrong choice.

This happens especially often if the main currency in which the money will be stored is chosen incorrectly.

If you make a mistake, you can, so to speak, out of the blue, lose several tens of percent of your funds, even if the money is kept in hard currency.

Today, the most popular currencies are the US dollar and the euro, but in 2022, the dollar exchange rate has strengthened significantly against the euro, and now many people are asking the question: Which currency is best to keep money in?

This also applies to deposited funds, as funds in a trader's account are also subject to exchange rate risk. If you had a deposit in euros at the beginning of the year, you lost at least 10%, while those who tried to keep their deposits in US dollars profited from the exchange rate increase.

I pondered this question because I myself suffered from the euro's fall. Most of my money was held in this currency for purely technical reasons, as it was more convenient and cheaper for me to withdraw profits from my trading account in euros.

And now the question has arisen again: which currency should I keep my money in? Should I leave everything as is, or should I convert my euros into dollars?

Will the euro fall further against the US dollar?

This is precisely what your next steps will depend on. If the euro continues to fall, you could lose even more. If it starts to recover, you should convert your dollars into euros now and profit from the exchange rate

Analyzing the EURUSD currency pair chart, we see that the price has fallen almost to its low, recorded in 2001 at $0.83 per euro. Meanwhile, the historical high is almost $1.60 per euro.

In my opinion, there are far more arguments that the European currency will start to rise than that it will continue to fall.

Firstly, the military conflict in Ukraine will end or enter a frozen phase within the next year, and this is the main reason why the euro fell.

Secondly, a strong dollar is not beneficial to America, as it negatively impacts the price of American goods on world markets, and sooner or later measures will be taken to artificially lower the US dollar exchange rate.

And thirdly, the US economy is going through far from its best hours, and pre-election political instability will lead to an even further deterioration of the situation.

The decline in the popularity of the US dollar is also observed on the Forex market; the volume of dollar purchase transactions has significantly decreased recently, and traders prefer to sell this currency.

Therefore, when choosing which currency to store your money in now, it is better to transfer the majority of your savings into euros and wait for the start of an upward trend.

This recommendation is relevant if you plan to keep money for a fairly long period; however, if you plan to spend it in the near future, then exchanging one currency for another makes no sense.