The Euro currency is trading at a two-decade low of 0.9903 against the U.S. dollar, with some
market observers forecasting further declines ahead.
The Euro is being hurt by the ongoing war in Ukraine, rising inflation across the European
Union, and a flight to safety in the U.S. dollar as fears of a global recession grow.
Additionally, wholesale gas prices in Europe are rising sharply after Russia announced
unscheduled maintenance on its main pipeline to Germany, while heat waves are straining
energy supplies on the continent.
At the same time, China reported GDP growth of 0.4% in the second quarter, missing analyst
expectations. The world’s second-largest economy continues to struggle with the worst COVID-
19 outbreak since March 2020.
The last time the Euro currency was trading this low vis-à-vis the U.S. dollar was 20 years ago
during the early 2000s.
Some economists are now forecasting a steep recession for Europe as central banks raise
interest rates to lower inflation that is running at a 40-year high in many countries.
