In one word: cornered. In recent months, Christine Lagarde and the ECB have watched helplessly as the value of the single currency plummeted on the currency markets. And this Tuesday, for a moment, the the euro traded below the dollar – with the US currency buoyed (against the euro, but not only) by investors sheltering from the risks of the global recession. Analysts say that the trend of the euro is to continue fallingwhich will increase business costs and penalize families (even more).
That the single currency reached parity against the dollar, sooner or later, was already a scenario accepted by most specialists in the foreign exchange market in recent months. This trajectory was accentuated in the summer of 2021, from the first moment, because the The US Federal Reserve recognized, long before the ECB, that inflation was not just a “transient” phenomenon. – and that it was necessary to move quickly towards a tightening of monetary policy (with interest rate hikes).
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Source: Observadora
