The energy crisis persists, which is a fatal sign for the common currency. Commerzbank economists forecast that the euro remains under pressure.
The energy crisis continues to be a major drag on the euro
“The energy crisis remains a major drag on the euro, even if the ECB can convince the markets that monetary policy follows a restrictive stance. In the end, high energy prices impoverish the euro zone“.
“The energy crisis shows signs of a classic terms-of-trade shock in which eurozone export prices must fall relative to import prices. In currency zones with flexible exchange rates, the necessary adjustment of relative prices takes place, at least in part, through the exchange rate.This means that as long as the energy crisis is not over, there are risks of devaluation for the euro“.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
