Euro falls to dollar parity amid fickle gas supplies, economic uncertainty

[1srelluc]

The euro has struck parity with the dollar for the first time in nearly 20 years before rising slightly as a cut in Russian gas supplies to Europe heightened rears of a recession in the eurozone.

The European single currency hit exactly one dollar – its lowest level since December 2002 – before rising to $1.0023 on Tuesday.

Mizuho analysts said the move towards parity was happening as "recession in the euro zone is priced in", and said the backdrop suggested little to improve risk sentiment.

"Either way, there looks to be little preventing euro/dollar breaking parity in the relatively near term," they wrote.

The European single currency is under pressure from the Federal Reserve hiking US interest rates more aggressively than the European Central Bank.

Euro falls to dollar parity amid fickle gas supplies, economic uncertainty

That's what all that virtue-signaling over Ukraine got them.....Oh well.

Looks like the Dow futures are taking a dump on the news too.

 

[Polishprince]

This is certainly a good point with the Ukraine v Russia war going on.

Seeing Europe fall, puts America is a better position as far as the balance of power in the world.

 

[JGalt]

The euro has struck parity with the dollar for the first time in nearly 20 years before rising slightly as a cut in Russian gas supplies to Europe heightened rears of a recession in the eurozone.

The European single currency hit exactly one dollar – its lowest level since December 2002 – before rising to $1.0023 on Tuesday.

Mizuho analysts said the move towards parity was happening as "recession in the euro zone is priced in", and said the backdrop suggested little to improve risk sentiment.

"Either way, there looks to be little preventing euro/dollar breaking parity in the relatively near term," they wrote.

The European single currency is under pressure from the Federal Reserve hiking US interest rates more aggressively than the European Central Bank.

Euro falls to dollar parity amid fickle gas supplies, economic uncertainty

That's what all that virtue-signaling over Ukraine got them.....Oh well.

Is it because the value of the dollar falling, or the value of the Euro rising?