The Euro has weakened on the back of fears that the energy crunch created by the Russia-Ukraine war and plans for the monetary tightening by the European Central Bank in response to inflation could send the eurozone into recession.
There is also a marked difference in how the FED is tackling rising inflation compared with the ECB. The FED has managed to aggressively increase interest rates lately, while its European counterpart has had to be more passive as it remains wary of the real dangers of slowing the economy.
The ECB is caught between a rock and a hard place as it needs to raise interest rates to tackle inflation and boost its currency while simultaneously supporting struggling economies which are just recovering after 2 years of pandemic-related issues.
Speak to Spartan FX to find out your options and how you can take advantage of these recent rate spikes
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