While the Nord Stream was already operating at a low capacity prior to the stoppage, Russia delayed the planned resumption of services on Saturday after detecting what it identified as an oil leak in a turbine. This comes at a precarious time for European nations looking to build up the gas supply they require for the winter months ahead. Currently, members of the European Union are scrambling to find alternative sources of natural gas in the face of the EU ban on the import of Russian goods.

During early European trade on Monday, the euro fell to $0.9876; the lowest rate since 2002. Michael Cahill, a strategist at Goldman Sachs, stated that his firm expects the euro to fall further below $0.97, explaining, “Gas flows have been curtailed even more than expected and we have already seen evidence of demand destruction weighing on activity.”

Other currencies that are also closely correlated with energy prices suffered major losses as well, with the sterling falling by 0.5% to a new 2-1/2 year low of $1.1444.

The post Europe Plummets to 20-Year Low Following Russian Oil Ban appeared first on theprimarymarket.com.

There are quite a few reasons for Euro’s tumble, including European Central Bank’s unwillingness to commit to aggressive interest rate hikes, rising gas prices, and increased demand for the USD. The European Union currency has shed close to 10 percent of its value against the dollar since the start of 2022.

According to Bloomberg, there is a strong possibility that Euro and USD will reach parity by year-end. Their option-pricing model predicted 46 percent chances of parity at the start of the week before hiking it to a 60% chance on Tuesday.

Others believe that parity is not a question of if but when.

“Parity is just a matter of time now,” said Mizuho Bank’s FX expert Neil Jones.

Inflation is taking over the eurozone, but the European Central Bank is yet to show resolution in fighting against it. There are some reports that the 25 basis-point increase in rates is planned for late July, which would be the first for the institution in 11 years.

In the meantime, the Federal Reserve has been aggressive in trying to stomp inflation. It already buffed the rates by 150 basis points, and another 75 basis-point increase is set for later this month.

The post Euro Dips to 20-Year Low Against USD, Closing in on Parity appeared first on theprimarymarket.com.

While the Nord Stream was already operating at a low capacity prior to the stoppage, Russia delayed the planned resumption of services on Saturday after detecting what it identified as an oil leak in a turbine. This comes at a precarious time for European nations looking to build up the gas supply they require for the winter months ahead. Currently, members of the European Union are scrambling to find alternative sources of natural gas in the face of the EU ban on the import of Russian goods.

During early European trade on Monday, the euro fell to $0.9876; the lowest rate since 2002. Michael Cahill, a strategist at Goldman Sachs, stated that his firm expects the euro to fall further below $0.97, explaining, “Gas flows have been curtailed even more than expected and we have already seen evidence of demand destruction weighing on activity.”

Other currencies that are also closely correlated with energy prices suffered major losses as well, with the sterling falling by 0.5% to a new 2-1/2 year low of $1.1444.

The post Europe Plummets to 20-Year Low Following Russian Oil Ban appeared first on theprimarymarket.com.

There are quite a few reasons for Euro’s tumble, including European Central Bank’s unwillingness to commit to aggressive interest rate hikes, rising gas prices, and increased demand for the USD. The European Union currency has shed close to 10 percent of its value against the dollar since the start of 2022.

According to Bloomberg, there is a strong possibility that Euro and USD will reach parity by year-end. Their option-pricing model predicted 46 percent chances of parity at the start of the week before hiking it to a 60% chance on Tuesday.

Others believe that parity is not a question of if but when.

“Parity is just a matter of time now,” said Mizuho Bank’s FX expert Neil Jones.

Inflation is taking over the eurozone, but the European Central Bank is yet to show resolution in fighting against it. There are some reports that the 25 basis-point increase in rates is planned for late July, which would be the first for the institution in 11 years.

In the meantime, the Federal Reserve has been aggressive in trying to stomp inflation. It already buffed the rates by 150 basis points, and another 75 basis-point increase is set for later this month.

The post Euro Dips to 20-Year Low Against USD, Closing in on Parity appeared first on theprimarymarket.com.