Uncertainties over Russian gas deliveries are worrying the markets and causing the euro to plunge to its lowest level in twenty years.
1.0001: such was the value of the euro in dollars on Tuesday at quarter to noon. You now need a microscope to observe the exchange rate between the two currencies. In other words, here is the return of parity between the single currency and the greenback, for the first time since 2002.
This situation, envisaged by forex traders for some time, has happened much faster than expected, precipitating a fall of nearly 12% in the euro since the beginning of the year. In a climate of great volatility on the foreign exchange markets, it was the uncertainty over deliveries of Russian gas to Europe that accelerated the movement.
Read alsoThe winners and losers of a weak euro
Moscow interrupted the flow of gas to intervene on the maintenance of the Nord Stream 1 gas pipeline. Theoretically until July 21. “The key question is whether the gas will come back after July 21,” asks Jeffrey Halley, analyst at Oanda. The scenario of a total cut, or a significant reduction in deliveries, is gaining momentum. Gold…
This article is for subscribers only. You have 79% left to discover.
Cultivating your freedom is cultivating your curiosity.
Keep reading your article for €0.99 for the first month
Already subscribed? Login