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The euro in FREE FALL: the currency loses 10% of its value against the dollar which is approaching the parity disaster | World | New

The bloc’s single currency hit €1.1876 against the greenback almost a year ago on July 9, 2021, according to the latest statistics from Bloomberg. But 12 months later, the Euro underpressure has plunged to €1.0186 and is in danger of falling below €1, which would prove to be an economic disaster for the European Union. In the past six months alone, Europe’s single currency has fallen more than €0.11 and in the past four weeks it has plunged from a high of €1.07.

Today (Wednesday), the Euro had already fallen by 0.78%, at the time of writing.

Twitter user “Gully Foyle #UKTrade” (@TerraOrBust) posted a photo of a chart showing the Euro’s sharp decline against the US Dollar.

They wrote alongside this: “In case this news hasn’t reached you for some reason.

“The euro has lost more than 10% of its value against the dollar over the past year and is now approaching parity.

“Ask yourself – is it normal that you don’t hear about it on the news? Would you expect to?”

Economic experts paint a truly dire picture for the Eurozone over the next few months, with a warning that the region may slide into economic decline in the third quarter.

The manufacturing sector is already in decline for the first time in two years, while the services sector has taken a hit from the cost of living crisis gripping across Europe.

Chris Williamson, chief economist at S&P Global Market Intelligence, said: “The sharp deterioration in the growth rate of business activity in the Eurozone increases the risk that the region will slide into economic decline in the third quarter.

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“The June PMI reading indicates quarterly GDP growth is moderating to just 0.2%, with forward-looking indicators such as the survey’s new orders and business expectations indicators pointing to lower output in the coming months.

He added: “The manufacturing sector is already in decline, for the first time in two years, and the services sector has suffered a marked loss of growth momentum amid the cost of living crisis.

“Household spending on non-essential goods and services has come under particular pressure from soaring prices, but business spending and investment are also falling in response to the gloomier outlook and tighter financial conditions.”

Last week, Eurostat, the EU’s statistical office, warned in a brief report that eurozone inflation is expected to jump to 8.6% in June, from an estimated 8.1% in May. fast.

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The report says: “Looking at the main components of Eurozone inflation, energy is expected to have the highest annual rate in June (41.9%, compared to 39.1% in May), followed by food, alcohol and tobacco (8.9%, against 7.5% in May), industrial goods excluding energy (4.3% against 4.2% in May) and services (3. 4% against 3.5% in May).

Like most of the world’s major currencies, the Eurozone economy has been battered in recent months due to Russia’s brutal and ongoing war in Ukraine.

This has led to a spike in inflation rates as hundreds of millions of people across the continent are now faced with spending far more on everyday items than before.

Soaring energy prices further stoked inflation fears, sending the euro tumbling amid growing recession fears.