The Euro Finally TANKED Against The US Dollar — After Decades!
(TargetLiberty.org) – The EU was facing fears of a recession on Tuesday after its currency slid against the dollar. Eurozone inflation is at a new record high and economic confidence is at a matching low. It seems even President Joe Biden hasn’t taken away the dollar’s reputation as a safe haven for investors.
Euro slides to 20-year low against the dollar as recession fears build: The euro fell to its lowest level in two decades on Tuesday, sliding over 1% to hit $1.0305. https://t.co/uEE6SvnU46 pic.twitter.com/lL8leU3foC
— CE-INVESTMENTS (@ce_investments) July 5, 2022
In early January a Euro — the currency used by 17 EU member states — was worth almost $1.14 US dollars. By the time trading closed on July 5, it had fallen below $1.03, the lowest it’s been since Christmas 2002. Now, many analysts expect the Euro to fall below the $1 mark within weeks. What is the EU doing wrong?
Experts are blaming interest rates for the Euro’s collapsing value. Despite Eurozone inflation running at 8.6%, similar to the level in the US, the European Central Bank hasn’t raised interest rates in 11 years. In fact, it’s currently running negative interest, at -0.5%, and a planned increase this month will only bring it to -0.25%.
Meanwhile, the Federal Reserve has already raised the US rate three times this year; it’s now at 1.75% and could reach more than twice that by the end of the year. Potential investors looking a few months into the future can see inflation in the Eurozone is likely to rise a lot further than in the US, and economic growth is much weaker. Even with our own inflation crisis, the American economy looks much safer than the EU’s.
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