SIMONE DEL ROSARIO: THE EURO IS DANGEROUSLY CLOSE TO REACHING PARITY WITH THE DOLLAR – MEANING ONE DOLLAR WOULD BUY ONE EURO.
RIGHT NOW – THE GOING PRICE IS $1.03 – THE LOWEST MARK IN 20 YEARS.
ON THE BRIGHT SIDE – NOW’S THE PERFECT TIME FOR THAT EUROPEAN VACATION. A WEAK EURO MEANS YOUR DOLLAR GOES FURTHER ON YOUR TRAVELS.
BUT THE CURRENCY CRASH IS ANOTHER SIGN THE EUROZONE COULD BE HEADING TOWARD A RECESSION.
ALREADY FACING RECORD 8.6% INFLATION – A WEAK EURO MEANS IMPORTS WILL COST THEM EVEN MORE… AT A TIME WHEN THE BLOC IS FACING A LOOMING ENERGY CRISIS OVER RUSSIA’S WAR IN UKRAINE.
NATURAL GAS PRICES IN EUROPE ARE AT 4-MONTH HIGHS, FURTHER EXACERBATED THIS WEEK BY PLANNED WORKER STRIKES IN OIL FIELDS IN NORWAY, AND AN IMPENDING SHUTDOWN OF NORD STREAM 1.
AND INVESTOR MORALE IS AT ITS LOWEST POINT IN 2-PLUS YEARS, ACCORDING TO SENTIX SURVEY.
SCORES LIKE THIS, THEY SAY, “JUSTIFY THE EXPECTATION THAT A RECESSION IS INEVITABLE.”
ANOTHER THING PUSHING THE EURO CLOSER TO THE DOLLAR – IS THE DOLLAR’S STRENGTH.
AS INVESTORS RUN FROM RISKY ASSETS, THEY’RE TURNING TO THE DOLLAR AS A SAFE HAVEN.
IN NEW YORK FOR JUST BUSINESS I’M SIMONE DEL ROSARIO.