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The euro fell below $0.99, the first for 20 years

Admittedly, the Euro, priced at 0.9884 this morning, remains to be cruising round parity, however we will additionally be aware that in December 2022 it has by no means been this low towards the American foreign money for almost twenty years. It can be famous that, since the starting of the yr, the European foreign money continues to weaken towards the greenback. Further fuel worth hikes and the full shutdown of the Nord Stream 1 fuel pipeline weighed on European currencies.

This devaluation of the European foreign money has a really arduous influence on import costs in France. Many corporations depending on international international locations need to cope with an explosion of their prices and go a portion of this enhance on to shopper costs.

Other currencies do not resist both

At the identical time, the greenback continued to get well after the speech of the president of the American Federal Reserve (Fed) who advocated a tighter financial coverage to curb inflation.

Other currencies aren’t doing a lot better than the euro, although: the yen has fallen greater than 20% over the previous yr. In early September, the British pound briefly fell below $1.15 for the first time since March 2020. The Cuban peso hit its lowest stage towards the US greenback on Sunday since 1990, as the island weathered its worst financial disaster in 30 years. It now prices 150 Cuban pesos to purchase an American greenback – or euro – on the black market, based on El Toque, an unbiased media outlet thought of unlawful in Cuba, which publishes main foreign money quotes.

European inventory markets traded

An entire shutdown of the Nord Stream fuel pipeline can be hurting European inventory markets. The German monetary middle, whose financial system is most depending on Russian fuel, plunged by 2.67% at the opening on Monday morning. Milan (-2.32%) and Paris (-2.08%) adopted, however London, much less delicate, fell solely 0.87%.

Results in line with final week. Last week, the Parisian ranking fell by 1.70%.

Among the optimistic factors for buyers final week, fuel costs fell sharply, falling by greater than a 3rd to finish at 210 euros per megawatt hour in the Dutch TTF benchmark market. It reached a historic excessive of 345 euros per megawatt hour on August 26. At the starting of the yr, it was round 70 euros.

Gas costs have elevated by 30% this Monday morning

The pattern in the fuel market has sharply reversed, after Gazprom’s determination “ utterly » Shut down the Nord Stream fuel pipeline. (*20*) benchmark fuel worth rose 30% to 272 euros per megawatt hour at the market open on Monday, regaining a lot of the floor misplaced final week.

Europe has executed an excellent job of sustaining excessive ranges of fuel storage and diversifying imports over the previous two months, but when Russia cuts off fuel provides, it is doubtless we can’t get via the winter with out vital restrictions or rationing. Enter Deutsche Bank Analyst.

Also, buyers are awaiting the conclusion of a gathering of OPEC international locations on Monday, 13 members of the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and ten of their companions led by Russia. They needs to be content material with a modest enhance of their manufacturing targets, with some specialists even suggesting a discount in assist costs which have fallen in current weeks.

(with AFP)