On the evening of July 12, Beijing time, the euro continued to weaken against the US dollar, reaching parity, that is, 1 euro = 1 US dollar, the first time in nearly 20 years.
Correspondingly, the US dollar index rose 1.24% to 108.2193 on July 11, setting a new high in nearly 20 years.
Since this week, the euro has continued to decline against the US dollar. The dollar was boosted by fears that the energy crisis would put the euro zone in recession, and the Fed was boosted by expectations that the Fed would raise interest rates faster and more dramatically faster than other central banks.
Shanxi Securities Research Report pointed out that since July, with the rise of the US dollar index, the euro against the US dollar exchange rate has fallen rapidly. Overall, the rapid decline in the euro's exchange rate against the United States was mainly due to the widening interest rate spreads in the euro zone, which caused the recurrence of the European debt crisis and the rise in recession expectations, which was the result of the slowdown in the European Central Bank's interest rate hikes in market transactions.
Shanxi Securities said that whether from the perspective of tightening strength or economic support, the euro-US exchange rate still has a further downward logic. Coupled with the frequent occurrence of geopolitical problems and the spread of de-globalization thought in the post-epidemic era, the value of the safe-haven attribute of the US dollar will be strengthened, making the euro-US exchange rate passively under pressure, and may fall below parity in the second half of the year, challenging the 0.98 support point.
