Euro slides to five-year low on Russian energy supply, slowdown fears

[Yo_Mama_Been_Loggin]

The euro tumbled against the U.S. dollar Wednesday morning as investors grew increasingly concerned with energy supply and a potential recession in the region.

The euro dipped below $1.06 for the first time since 2017. It was last almost 0.9% lower to $1.054. The dollar has surged in recent weeks on its safe-haven appeal, as traders fear a growth slowdown or even a recession.

"The euro is clearly heading towards parity. Reasons for this weakness are the weak economic prospects for the eurozone and huge differences in monetary policy reactions in the US and the eurozone," Carsten Brzeski, chief economist at ING Germany, told CNBC via email.

The market moves come as Russian state energy firm Gazprom decided to halt natural gas supplies to Poland and Bulgaria — two members of the European Union — with Moscow demanding payment in rubles. Tensions continue to rise between Moscow and the West following Russia's unprovoked invasion of Ukraine on Feb. 24.

https://www.msn.com/en-us/money/markets/euro-slides-to-five-year-low-on-russian-energy-supply-slowdown-fears/ar-AAWEiQt

[peppertree]

1. Another major (though underreported) way in which Putin and Cheeto agree: weakening the EU

For different reasons - but in both cases just as compelling (to them):

Putin, for the obvious geopolitical considerations;

and Cheeto, because he very much subscribes to the neo-con goal of rendering the Euro useless as a hard currency internationally.

The euro, as you know, is the only real competition the U.S. dollar has as the "reserve currency of the world" - and for neo-cons, a competitor is just another name for something to be destroyed.