> I don't see any evidence that EUR is particularly strong against USD. Except maybe if you take a very short-term perspective.
Yes; this is a short term perspective. Europe is functionally an export market and these currency fluctuations hurt badly. For example, Mercedes-Benz had a consolidated profit margin in '22 of around 9%. These swings do either force loss of jobs (bad) or require a devaluation of the currency.4
Europe was also an export market in the past. Back in early 2002, 1 EUR was worth less than 0.9 USD. Then it started climbing rapidly and reached a peak of 1.6 USD in mid-2008.
The value of money is inherently unpredictable. The exchange rate between EUR and USD has never been stable longer than about 1.5 years. Something unexpected always happens, and then the rate goes up or down by 10% or even more. You either tolerate that or try protecting yourself with various financial instruments.
Yes; this is a short term perspective. Europe is functionally an export market and these currency fluctuations hurt badly. For example, Mercedes-Benz had a consolidated profit margin in '22 of around 9%. These swings do either force loss of jobs (bad) or require a devaluation of the currency.4