Euro on track to slump to parity against dollar within weeks, humiliating milestone for the latest blow to the credibility of Europe's single currency

[beijingwalker]

Euro on track to slump to parity against dollar within weeks, humiliating milestone for the latest blow to the credibility of Europe's single currency

PUBLISHED: 16:50 EDT, 2 July 2022

The euro is on track to slump to parity against the dollar within weeks, according to a leading investment bank.

The humiliating milestone would be the latest blow to the credibility of Europe's single currency.

The European Central Bank has controversially kept interest rates below zero, making euros less attractive as central banks in the UK and US hiked rates to combat runaway inflation.

Investors are also spooked by the rising risk of recession in the eurozone itself.

Last week, ECB president Christine Lagarde warned inflation pressures were 'broadening and intensifying' with no sign of an end to soaring energy and commodity prices after Russia's invasion of Ukraine.

Just over a year ago, a euro bought $1.22. Now analysts at Nomura expect it to be worth no more than a dollar by the end of next month.

It hit new lows of $1.04 on Friday. But it could sink even further given the high dependence of Germany – Europe's largest economy – on Russian energy and trade.

Analysts fear that Vladimir Putin may use the planned maintenance shutdown of the vital NordStream 1 pipeline in mid-July to turn off gas supplies to Germany altogether.

'If Russia cuts off gas supplies to Germany it could be the biggest economic hit in modern history outside of Covid-19 and the global financial crisis,' said Nomura strategist Jordan Rochester. The Bundesbank reckons this would wipe up to 5 per cent, or £175billion, off the size of the German economy.

Another growing risk is a repeat of the eurozone crisis of a decade ago when economically ailing countries such as Greece needed to be bailed out.

The ECB plans to start lifting interest rates – currently minus 0.5 per cent – above zero later this month for the first time since 2011.

The pound has hovered between €1.15 and €1.20 in the last year.

Euro is on track to slump to parity against dollar within weeks

The humiliating milestone would be the latest blow to the credibility of Europe's single currency.

www.thisismoney.co.uk

 

[MH.Yang]

These Europeans who rely on high-end luxury goods production are actually the biggest beneficiaries of global economic integration, any setback in the process of global economic integration will have a serious impact on their economy.
This time, the energy crisis caused by Ukraine is only the beginning.

 

[Dalit]

For the first time in a long while have I seen Europhiles sweat it out. Ukraine is not a war in the Middle East, but right next door. The Ukraine war has impacted virtually all aspects of life. Not that European economies were doing great before the war.

 

[VCheng]

How humiliating indeed, considering that such impending parity is against a dead currency!

 

[Wergeland]

These Europeans who rely on high-end luxury goods production are actually the biggest beneficiaries of global economic integration, any setback in the process of global economic integration will have a serious impact on their economy.
This time, the energy crisis caused by Ukraine is only the beginning.

This is price Europe must pay for not having independent defence and foreign policies, unfortunately.

 

[beijingwalker]

30 years ago Japan had to do US bidding and killed its own economy, today, US is pulling the same trick on Europe again.

 

[northeast]

30 years ago Japan had to do US bidding and killed its own economy, today, US is pulling the same trick on Europe again.

Well,Europe economy is weak at least for few decades. US mega Monopolies are harvesting for scientists and european money in Europe in the US propaganda of free competition. Now they are collapsing like Japan. US is a blood sucking vampire for their allies.
Europeans are too arrogant and lazy to eat on their ancestors' legacy. They now want 4 work days in a week. Theere are so many leftists in europe believe the fantasies their propaganda machine have created.

 

[Chat SAMOSA]

The world's largest money laundering center is the OFFICIAL British economy. Whether Russian oligarchs or another banana republic honchos or corrupt politicians and their agents from developing world and poor countries - Britain and its affiliated islands are most welcoming as the place for stashing ill gotten wealth and eventually a safe refuge for the criminals involved.

I wish and hope some countries will band together soon and mount an effort to blacklist Britain under FATF to start with. Such is egregious nature of open British laws in this respect.

 

[Akritas]

These Europeans who rely on high-end luxury goods production are actually the biggest beneficiaries of global economic integration, any setback in the process of global economic integration will have a serious impact on their economy.
This time, the energy crisis caused by Ukraine is only the beginning.

In my view, the invasion of Ukraine will change the way Europeans interpreted economic globalization and will now begin to combine it with political globalization.
Americans warned them, but the super profits did not let them see clearly.
e.g. technology transfer will end because countries like China, India, Turkey, with reverse engineering, started getting contracts and profits.

 

[Ahmadbhutta01]

If the war in Ukraine doesn't stop sooner we will witness ww3 in our lifetime , the world is going into recession and the west would never compromise on their quality of life , they will eventually wage wars

 

[Communism]

The whole point of the Euro is so that Germany can devalue the Deutschemark.

It's the same reason that Japan is absolutely giddy with joy that their currency is finally devaluing after trying decades to do so.

U.K. is totally ****ed if their currency continues to devalue though, since they produce nothing.

Looks like a british copium article for the most part.

 

[Catalystic]

Well……people in poor countries already suffering too much, they probably won’t shed a tear fir the europeans who became usa puppies……u messed with wrong enemy
The real powers of this world actually want euro/eu to crash and break up……its become easier due to this war.
WW3 flashpoints have been created and now its chaos/anarchy being created everywhere……all matter of time and turn……won’t be pretty……pretty sad that humanity has to come to wars

 

[Communism]

Well……people in poor countries already suffering too much, they probably won’t shed a tear fir the europeans who became usa puppies……u messed with wrong enemy
The real powers of this world actually want euro/eu to crash and break up……its become easier due to this war.
WW3 flashpoints have been created and now its chaos/anarchy being created everywhere……all matter of time and turn……won’t be pretty……pretty sad that humanity has to come to wars

This is just using the cover of the conflict for the Eurozone, Japan, and South Korea to competitively devalue their currencies to lower labor costs with zero public backlash.

While the british cry in a corner.

When the situation normalizes the Eurozone, Japan, and South Korea will end up with a lower labor cost trend when plotted over time than they would have otherwise.

 

[MH.Yang]

In my view, the invasion of Ukraine will change the way Europeans interpreted economic globalization and will now begin to combine it with political globalization.
Americans warned them, but the super profits did not let them see clearly.
e.g. technology transfer will end because countries like China, India, Turkey, with reverse engineering, started getting contracts and profits.

Europe has no technology, only brands. For example, Gucci, Dior, palacegift, Louis Vuitton, Rolex, Chanel, etc.

 

[VCheng]

Europe has no technology, only brands. For example, Gucci, Dior, palacegift, Louis Vuitton, Rolex, Chanel, etc.

Airbus? Rolls-Royce? Etc. Etc.