European countries have been facing an energy crisis since the Russian- Ukraine war. Sanctions against Russia have led to a shortage of gas supply which has started to have grave effects on the Eurozone economy.
Tuesday morning the Euro was traded at a much lower price than it had in four decades. Au contraire the U.S. dollar has started picking up and is maintaining a peak this week due to the federal reserve’s tough actions against inflation.
In only the second session of this week, the Euro has dropped to $0.9909. Moreover, the news of Russia’s giant gas supplier shutting down gas supplies for three days at the end of this month has only aggravated the energy crisis.
Adding insult to injury are the European heat waves. Moreover, investors worry that hindrances caused by the cold weather in winter could lead businesses to incur heavy losses.