Euro feels the pressure as economy tips toward recession
The Euro, hanging on just above parity with the dollar, after a brief dip below that level earlier this month for the first time in more than two decades.赌球平台推荐（www.hg108.vip）是一个开放皇冠即时比分、代理最新登录线路、会员最新登录线路、皇冠代理APP下载、皇冠会员APP下载、皇冠线路APP下载、皇冠电脑版下载、皇冠手机版下载的皇冠新现金网平台。赌球平台推荐上登录线路最新、新2皇冠网址更新最快,赌球平台推荐开放皇冠会员注册、皇冠代理开户等业务。
FRANKFURT: The euro, already beaten down this year to the lowest in two decades, remains an unloved currency stuck under relentless pressure as its economy stumbles toward a recession.
It’s hanging on just above parity with the dollar, after a brief dip below that level earlier this month for the first time in more than two decades.
The currency has become a lightning rod for the mounting pessimism about the eurozone’s economy.
It’s fallen more than 10% versus the dollar this year, and many analysts say the likely direction from here is further down.
Much of the economic gloom is centred on the disruption of Russian energy supplies to Europe, which particularly threatens German industry.
Credit Suisse sees a 50% chance of the eurozone falling into a recession in the next six months. Goldman Sachs says it may already be in one.
Italy is also a big source of worry amid political turmoil that led to the departure of Prime Minister Mario Draghi.,
S&P Global Ratings lowered its outlook on the country’s debt, and a key gauge of risk, the spread of Italian bond yields over Germany’s, is around the highest since 2020.
Nerves over Italy leaving the eurozone are showing up in credit default swaps, though it’s seen as a very remote risk.
From a price perspective, the euro is faring even worse than in 2012 – the low that year was US$1.20.
It was trading around US$1.02 (RM4.54) after slipping to 99.52 US cents on July 14.
JPMorgan Chase and Rabobank are expecting it to slide as low as 95 US cents (RM4.40) given Europe’s exposure to the energy crisis.
Option pricing puts the odds on a drop to parity by the end of the year at around 70%.
The Bloomberg consensus forecast for year end is US$1.06 (RM4.72). — Bloomberg