Is the Euro Overvalued?
Although prices in the euro zone seem high relative to those in the US, much of the difference reflects Europe's value-added tax. In fact, far from being overvalued, the euro is set to strengthen against the dollar, owing to complementary pressures on Europe to import funds, and on surplus countries to diversify their foreign-exchange holdings.
https://prosyn.org/JTAr8l7
CAMBRIDGE – An American traveler in Paris or Berlin is continually struck by how high prices are relative to those in the United States. A hotel room, a simple lunch, or a man’s shirt all cost more at today’s exchange rate than they would in New York or Chicago. To bring the cost of those goods and services down to the level in the US would require the euro to fall relative to the dollar by about 15%, to around $1.10.