The euro fell to a 20-year low against the US dollar

According to the ECB, the has fallen by more than nine percent against the US since the beginning of this year.

According to S&P Global, the industrial purchasing managers’ index (PMI), which measures the direction of economic development in the euro area, fell to 52.1 in June from 54.6 in May.

“While the June PMI surveys show continued growth at the end of the second quarter, a sharp slowdown in growth increases the risk that the region will slide into an economic recession in the third quarter,” said S&P’s Global report. on Tuesday.

in the euro area has accelerated, which according to market observers may weaken confidence and weigh on . According to the Statistical Center of the European Union, annual inflation in the euro area accelerated to 8.6 percent in June from 8.1 percent in May.

Compared to its US counterpart, the ECB appears to be less aggressive in tightening monetary policy, adding to downward pressure on the common .

The ECB ended its bond buying program in June and is ready to raise interest rates in July. However, the bonds of some member states, including , have risen significantly since the ECB announced its decision to raise interest rates.

The ECB was forced to support some government bonds by introducing an anti-fragmentation mechanism, which inevitably undermines its tightening policy and creates downward pressure on the euro.

Source: / Xinhua

Source: The Nordic Page

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