European leaders have given Greece time until Friday, July 10th, to reach an aid-for-reforms deal with its creditors or risk bankruptcy and banking collapse. Which currency option is best for the future of Greece?
More observers are growing bullish on the euro this year despite its relative slump against the US dollar in 2022.
Analysts have also observed that the momentum indicator of the EUR/USD daily chart keeps getting to a negative level.
Euro at lowest level in 20 years in relation to the dollar, as energy woes continue to dictate the macroeconomic landscape.
The surge in the US-Dollar index has created unrelenting pressure on the price of crude and commodities.
Besides the pressures from abroad, the Euro is still buckling under the weight of the growing inflation within the countries.
The hopes of recovery for many foreign currencies against the US Dollar are deemed in the short term considering the fact that many Central Banks are expecting a hike in interest rate to combat inflation.
In the Euro area, the inflation figures for the month of July were pegged at 8.9 percent in July 2022, up from 8.6 percent in June 2022 and 8.1 percent in May 2022.
The weakening Euro currency and looming energy crisis have put further pressure on EUR/USD pair which has registered a breakdown on the charts.
The US dollar is globally recognized as a safe haven, and so the recent market condition has increased demand for the currency.
The Eurozone’s inflation data came in at 8.6% in June, a figure that has prompted the European Central Bank (ECB) to give advance notice to market stakeholders of its intentions to hike interest rates.