Michigan Co. has a subsidiary based in Italy and is exposed…

Michigan Co. has a subsidiary based in Italy and is exposed to translation exposure. Michigan forecasts that its earnings next year will be €10 million. Michigan decides to hedge the expected earnings by selling €10 million forward. During the next year, the euro depreciated. Michigan’s consolidated earnings were ____ affected by the euro’s movement, and Michigan’s hedge position was ____ affected by the euro’s movement.