On another turbulent day in the currency markets, the euro crashes to a new 20-year low against the US dollar
The euro crashed to a fresh 20-year low against the creeping US dollar yesterday.
On another turbulent day in the foreign exchange markets which saw the pound tumble, the single currency fell nearly $0.97 for the first time since 2002.
This came as business activity in the eurozone suffered its biggest contraction in 20 months. The S&P Global Purchasing Managers’ Index, a key gauge of economic conditions, was 48.2, down from 48.9 in August.
Crash: On another choppy day in the forex markets that saw the pound tumble, the single currency fell almost $0.97 for the first time since 2002
It was below the 50 mark that separates contraction and expansion and the lowest reading since January 2021. “A eurozone recession is on the cards,” said Chris Williamson, economist at S&P Global. .
“Germany is facing the most difficult conditions, with the economy deteriorating at a pace not seen outside of the pandemic since the global financial crisis.”
The report highlights the devastating impact the war in Ukraine has had on the global economy as energy prices soar.
There are fears that the Eurozone, like the UK, is in recession. “Commercial activity contracted throughout the quarter,” said Bert Colijn at ING. “This confirms our view that a recession has already begun.”