The community currency is about to be exchanged for the same value as the US currency, after falling nearly 20% in the past year
The euro is about to be worth exactly the same as the dollar. It is the one referred to as parity of the two major currencies of the world after a continuous decline that the value of the community currency has gone through in recent months, in an evolution that has favored the US currency. At the start of the session next Friday, one euro will be exchanged for $1.01.
If it achieves the same change, it will be the first time in the past 20 years that both are worth the same. This morning it is down 0.4% from yesterday’s closing price and has fallen for nearly a year, a period in which it has lost 20% of its value.
The euro’s fall is essentially explained by uncertainty about the outlook for the eurozone economy, which is being weighed down by the effects of the Russian invasion of Ukraine. The European Central Bank (ECB) is likely to raise interest rates on the 21st, although it would do so by 0.25 points, the minimum it is targeting, far from a half-point hike as some analysts had expected.
On the contrary, in recent months the Federal Reserve (FED) has raised its interest rates to about 1% on average, in a much more lenient and dynamic monetary policy given the high levels of inflation seen in that country since the start of the invasion.
The fall of the euro has a fundamental effect on the capital that Europe is allocating to pay for the oil it receives from the rest of the world, as this commodity is paid for in dollars. As this currency continues to gain strength, the payout from European economies, such as Spain’s, is increasing.
This morning, the price of a barrel of Brent oil, a benchmark for the Old Continent, stood at $104.62, down 0.03%, while the Texas was at $102.14, retracing 0.57. %.
The Ibex 35 kicked off the session this Friday with a 0.27% drop, leading the Selective to lose 8,100 points as investors await the release of new macro data, such as the unemployment rate in the United States. States, and the actions of the President of the European Central Bank (ECB), Christine Lagarde.
Specifically, the Madrid selective started the session at 8,100 points, in a context still marked by high inflation, central bank decisions, fears of an economic slowdown, the euro losing ground against the dollar, and the war between Russia and Ukraine.
Like Madrid, major European markets also turned negative in the last session of the week, falling 0.3% in Frankfurt and 0.2% in London. Paris, for its part, woke up almost flat (-0.03%).
Within the Ibex 35, most recorded values fall in the early stages of the session. The biggest setbacks were recorded by Merlin (-3.54%), Iberdrola (-3.22%), Acerinox (-2.34%), ArcelorMittal (-2.22%) and Indra (-1.6%) .
Among the few gains made during the opening, Inditex (+1.5%), Meliá (+0.7%), Enagás (+0.5%) and Aena, which rose 0.4% after the company’s credit rating Moody’s agency had upgraded its outlook from ‘negative’. ‘ to ‘stable’ and confirmed its long-term rating at ‘A3’.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
