7:42 p.m., August 22, 2022
At 5:30 p.m., the euro lost 0.96% once morest the dollar, and was trading at 0.9941 dollars, the lowest level since 2002, when the euro was put into circulation. The euro has never been so low once morest the dollar. In addition to theinflation
Already devastating for consumers and businesses in Europe, the strong dollar is making imports more expensive, especially for commodities like oil that are priced in dollars.
Kit Juckes, analyst at Societe Generale, warns that the week might be complicated for the euro. Indeed, since the beginning of the year, the currency had recovered following having flirted with the parity threshold
most ” poor PMI indicators on Tuesday might be enough to anchor the euro under a dollar “, he warns. Also, in the United States, despite a slight weakening in US inflation in July, the US Federal Reserve
(Fed) ensures that it will continue to tighten its monetary policy.
The price of gas continues to rise
This Monday, Craig Erlam, an analyst at Oanda, recalled that ” Europe is preparing for another shutdown of the gas pipeline Nord Stream 1
later in the month “. Indeed, gas giant Gazprom warned that gas supplies would be cut off for “ maintenance from August 31 to September 2, at the risk of rekindling the fear of a shortage in Europe, where Russia is accused of energy blackmail.
Thereby, the price of European gas is soaring once more
, and reached, on Monday, 295 euros per megawatt hour, approaching the historic records reached in the first days of the invasion of Ukraine by Russia. ” The Sword of Damocles hanging over Europe is gone to stay there warns Kit Juckes.
The pound also weakened
While the American economy is less affected than Europe by the war in ukraine
, the Fed has more leeway to act than European central banks. Thus, the British pound has also returned to its lowest level of 2022. Analysts from the exchange company OFX describe “ a bad year for the pound, which even fell once morest the euro, while the Bank of England raised its rates at each meeting since the end of 2021.
Despite these rate hikes, British inflation exceeds 10% over one year, the highest in the G7, due to the war in Ukraine, the followingmath of the pandemic, but also Brexit, which tightens the labor market and disrupts even more supply chains UK
. At 1.1764 dollar for a pound, the British currency is at its lowest since the beginning of 2020 and the first months of the pandemic.
