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19 July, 2024
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Euro at new 20-year low against the US dollar

Increasing concerns about the future of the European economy

Source: Money Review

The euro slipped to a new twenty-year low due to fears of increased inflationary pressures and an impending recession in Europe as a result of the energy crisis.

In particular, the euro fell again against the dollar as there is widespread concern that Russia will further reduce or completely cut off natural gas flows to Europe, consequently slowing the Eurozone economy. Also, after the minutes from last month's Fed meeting were released, fresh concerns were sparked that the Bank will continue raising interest rates, boosting the dollar.

Concerns about the future of the European economy were further strengthened after the publication of a series of business surveys in Geria Epirus. S&P Global's PMI slipped to 49.2 in August from 49.9 last month, pointing to a faster contraction in business activity. As a result, the euro hit $0.99005.

In the European stock markets, a mixed picture appears with a slight downward trend. The Stoxx600 shortly after 3 p.m. Greek time shows losses of 0.29%.

Cyprus  |  Europe  |  inflation  |  economy

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