The exchange rate is almost on par with the dollar- Corriere.it

The euro slipped away from parity against the dollar, stopping at 1.029 at the close, the lowest since December 2002, the year the single currency entered our pockets, nearly two decades ago. down 1.72% but during the session the European currency reached a low of 1.0238 against the dollar, another day to forget as stock markets fell again sharply in Europe, the price of gas is still on the rise, also due to the labor strike in Norway, which is forcing The Scandinavian country is warning of potential supply cuts.

At this point, parity between the euro and the dollar seems almost inevitable in the face of deteriorating economic prospects. But at the moment, the weakness of the common currency, which in theory favors exports to the United States and countries pegged to the dollar, is a double-edged sword, because it increases the cost of energy imported by Europe and increases its price. Raw materials. Possible new increases are bad news for inflation, which in the eurozone jumped, on average, in June to 8.6%, the same level as in the US (in Italy to 8%).

Two different numbers in the energy market tell us why the threat of a recession is now so frightening Investors are earnestly on both sides of the Atlantic and plunge the stock exchanges. On the Ttf exchange in Amsterdam, where the price of European methane is fixed, yesterday gas futures prices for August delivery crossed the threshold of 170 euros per megawatt-hour, at the highest levels of the past four months, to close thereafter. Priced at $163.6. However, New York’s West Texas Intermediate crude fell below $100 a barrel. Citi analysts now expect the price of crude oil to fall to $65 by the year due to declining demand linked to the admitted recession.

TheIn Europe, the new rise in gas pricesMarket fears, exacerbation of inflation and pressure on companies and families, exacerbation of public and private budgets, and punishment of consumption and investments, with the risk of opening the doors to a new economic crisis, after the crisis caused by the epidemic. This low growth and high inflation situation further complicates the task of European Central Bank President Christine Lagarde, who is struggling with a board of governors already divided among those who support the Bundesbank’s positions, to support a sharper rate hike. – Attention to stop the price rush, and who instead wants a gradual increase, to avoid not only the risk of stagnation, but also widening of the spreads. Yesterday, the spread between the ten-year BTP and the German Bund closed up at 209 points, with the yield dropping to 3.28% from 3.35%.

On the other hand, Federal Reserve Chairman Jay Powell will continue to raise interest rates continuouslyWhich could rise to 3.9% at the beginning of 2023, even at the cost of a recession, not the worst at all, in order to curb inflation.

Thus, all European listings were negatively closedwith losses ranging between 2.7% and 3% (Milan the worst stock exchange at -2.99), while on Wall Street, the Dow Jones limits losses (-0.42%) and the Nasdaq rises by 1, 75%.

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