The dollar dominates the currency market – Omen of recession?

The dollar dominates the currency market – Omen of recession?
The dollar dominates the currency market – Omen of recession?

Lives opposite for the US dollar against the rest of the currencies, a sign that the picture in the markets is “black” and going from bad… to worse.

The American currency is a safe haven in times of crisis, with repeated interest rate hikes by central banks, which are the only “weapon” in their hands, bringing to the surface the possibility of recession. Something that unfortunately does not seem to concern the central bankers as much as it should.

This tactic leads to a massive sell-off in the stock markets and strengthens the dollar, while on the contrary it weakens other major currencies such as the euro and sterling. In particular, sterling is set for its biggest weekly drop against the dollar in two years, while at the same time “touching” a new 37-year low at $1.1051 per pound. In addition, UK bond yields posted their biggest daily rise in decades.

At the same time, the euro slipped 0.8% to $0.9736 per euro, the lowest level for the single European currency since October 2002. The euro’s new dip was mainly due to the release of new research according to with which the downturn in business activity across the eurozone accelerated this month and the economy is likely to enter recession.

In combination with the aggressive monetary policy of the central banks, which we mentioned above, the fragile geopolitical climate with the Russia-Ukraine war and the energy crisis that mainly “plagues” Europe, the multi-year lows for the euro and the British pound and the corresponding highs for the dollar they are a logical consequence.


The article is in Greek

Tags: dollar dominates currency market Omen recession

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