Euro falls to two year low

Fri, 11/22/2024

by Ellie LeTu

Source: Financial Times

• Euro continues to depreciate relative to USD

  • Fell more than 1% to 1.033 against USD.

  • Lowest level since European energy crisis of 2022.

  • The Euro could reach parity with the USD soon.

    • 1:1 trade.

• Worsening geopolitical situation

  • Russia’s war with Ukraine is intensifying.

  • A rise in natural gas prices continues to put stress on the Eurozone’s trade balance.

  • Natural gas price spikes in 2022 severely hit the Euro currency. 

    • Concerns that a repeat is happening.

• Prospect of US tariffs

  • Trump’s aggressive tariff plan continues to weigh on possible European growth.

    • A trade war adds even more stress to an economy already under plenty of stress.

  • The European Central Bank (ECB) is expected to continue to cut rates.

    • Quarter point cuts expected at the next four meetings.`