Concern that a three-day interruption to the mainland’s gas supplies later this month could exacerbate an energy crisis is a major factor in the situations.
Euro is normally quoted above the dollar
O euro fell 0.4% below par against the dollar this Monday, the 22nd, to USD 0.99945, its lowest level since mid-July. The currency was languishing at five-week lows, weighed down by concerns that a three-day outage in gas supplies European later this month could exacerbate an energy crisis. O yuan of China also fell to the lowest level in nearly two years after the central bank cut key lending rates. The dollar index, which measures the dollar against a basket of pairs, hit new five-week highs as officials from the Federal Reserve reiterating an aggressive stance of monetary tightening ahead of the Fed’s Jackson Hole symposium this week. It was the euro that bore the brunt of selling pressure against the dollar after Russia announced on Friday a three-day interruption to gas supplies. European via the Nord Stream 1 pipeline later this month. “The fair value of euro was harmed by the energy shock – which means that the euro /dollar is not especially cheap even at these levels,” said Chris Turner, global head of markets at ING.
The main European stock exchanges They fell earlier in Monday’s session as inflation concerns and interest rate speculation continued to encourage investors to be cautious. In Paris, the CAC 40 lost 1.2% to 6,417.78 points around 07:45 GMT. In London, the FTSE 100 lost 0.4% and in Frankfurt, the Dax was down 1.36%. the index Euro Stoxx 50 is down 1.25%, the FTS Euro first 300 0.5% and Stoxx 600 0.77%. The latter has already dropped 0.8% in the whole of last week and the CAC 40, 0.89%. Investors should avoid taking risks until Friday, the 26th, and the speech that Jerome Powell, chairman of the Federal Reserve, will make at the traditional seminar in Jackson Hole. However, the markets will watch the “flash” PMI indices on Tuesday, the 23rd, which may confirm the risk of recession in the zone. eurothen on Thursday, 25th, the minutes of the Central Bank’s July meeting European.
*With information from Reuters
Source: Jovempan
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
