America Catches Up To Europe After Almost 22 Years Of Dollar Losing Out To Euro


Kay Smythe News and Commentary Writer
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The Euro fell below parity against the U.S. dollar Monday, the second time it has happened in just over a month.

Morgan Stanley predicts the euro will drop to $0.97 this quarter, which has not happened since the early 2000s, Bloomberg reported. Strategists suggest the dip is just the beginning of a deeper descent into a difficult financial winter, the outlet noted.

Nomura International Plc believes the market could be looking at a $0.95 level in October and subsequent months due to ongoing concerns over Europe’s energy future, Bloomberg continued. Deutsche Bank suggested back in July that this exact crisis could occur as the continent falls deeper into a recession, CNBC noted.

The second collapse was attributed to concerns that there will be a three-day halt to all European gas supplies via the Nord Stream 1 pipeline later in August, exacerbating an already struggling energy sector, Reuters reported. The pressure on Europe’s energy sector increases the risk of blackouts across the continent, along with stress from global rates of inflation, Bloomberg continued.

“The energy shock seems sure [it will] drive Europe into a recession,” Bannockburn Global Forex chief market strategist Marc Chandler wrote Monday, according to Insider. (RELATED: ‘One Of The Worst Downturns’: Mark Zuckerberg Blasts Biden’s Economy In Warning To Employees)

Back stateside, the Dow Jones Industrial average future plummeted more than 350 points Monday amid fears of aggressive rate hikes come September. A poll released Sunday suggested Americans overwhelmingly believe the U.S. is already in a recession, with 74% of respondents saying the country is heading in the wrong direction.