The nightmare in Europe retains getting worse.
Natural fuel costs are up one other 9% at present and ahead electrical energy costs in Germany are 14x above the degrees from a 12 months in the past. These are crippling numbers for heavy trade and the German DAX is down 2.3% at present, which is the worst of any main international index.
The euro has treaded water for the previous six weeks because the US greenback softened on a less-hawkish Fed however that commerce now seems to be exhausted. Meanwhile, the outlook for Europe is quickly deteriorating. The euro low in July was 0.9952 and we’re about 20 pips away from that now. If it breaks, it will likely be on the lowest degree since late-2002.
What struck me this weekend is that the general public in Europe has but to comprehend how unhealthy it is going to be. There’s a lag in power costs that hasn’t been felt but and is dependent upon totally different nations and contract constructions however the ache is coming.
Topless protestors this weekend photobombed German Chancellor Olaf Scholz with a message that learn ‘fuel embargo now’.
The time to purchase the euro will not be till they’re protesting the other.