The price of the euro against the dollar briefly fell below parity this Monday in view of the prospects that point to a growing risk of recession in the euro zone and the expectation that at the end of this week they will meet in Jackson Hole, representatives the US Federal Reserve and other central banks.
In this way, the exchange rate for the euro against the “greenback” fell this Monday to 0.9992 dollars from the 1.0034 dollars of the previous closing, although after the opening of the stock markets of the Old Continent the European currency recovered part of the lost land and was exchanged for 1,0010 dollars.
Last week, the German representative on the board of the European Central Bank (ECB), Isabel Schnabel, recognized that the signs pointing to a slowdown in growth in the euro zone open the door for the region’s economy to enter a technical recession , while it will probably take some time for inflationary pressures to dissipate.
However, despite the expected deterioration in activity in the euro zone, Ella Schnabel noted that she does not see “any indication of a prolonged and deep recession at this time”.
In this way, with a view to the meeting of the Governing Council of the ECB next September, Schnabel was in favor of the entity acting decisively again, since, when looking at the most recent data, the concerns that were in July, when the central bank decided to undertake a 50 basis point rate hike, “they haven’t eased”.
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