USD v EU For the first time in 20 years!
The exchange rate between the euro and the US dollar is nearly the same , two currencies are less than one cent away from parity.
Fears of recession on the continent followed by high inflation and energy supply uncertainty caused by Russia’s invasion of Ukraine caused the euro to lost it’s value in the market
tweet from the latest USD v EU
For the first time in 20 years!
The exchange rate between the Euro and the USD$ is nearly the same the two currencies are less than one cent away from parity!#inflation #NEWS #market #currency https://t.co/4bnwBLOUmN
— The_Journalbiz (@the_journalbiz) July 11, 2022
The European Union, which received roughly 40% of its gas through Russian pipelines before the war, is attempting to reduce its dependence on Russian oil and gas.
As Germany recorded its first trade deficit in goods since 1991 last week, as fuel prices and general supply chain chaos significantly increased the price of imports.
The energy crisis comes alongside an economic slowdown, which has cast doubts over whether the European Central Bank can adequately tighten policy to bring down inflation.
The ECB announced that it will hike interest rates this month for the first time since 2011, as the eurozone inflation rate sits at 8.6%. while FED’S Aggressive rate hike bets have boosted the dollar with an index rising to a near two-decade high of 105.79 earlier this month.
Recent data indicators in U.S showing economic momentum starting to cool and a broader drop in commodity prices, investors are becoming cautious