The dollar torments the euro by reaching a two-year high

The dollar rose to a two-year high against the euro on Friday, a movement based on a divergence in economic and monetary trajectories, which makes the hypothesis of parity between the two currencies credible. Around 9:15 p.m. GMT (10:15 p.m. in France), the greenback gained 0.56% against the single currency, at 1.0416 dollars per euro. Earlier, the currency common to 20 European countries had fallen to $1.0335, a first since the end of November 2022.

The inflection was triggered by poor indicators in the euro zone. The PMI index notably showed that in October, economic activity had posted its weakest pace in ten months in November. This data “paint a worrying picture of the situation in Europe”commented Christopher Vecchio, from Tastylive. “They are sliding into recession much faster than anyone expected.” “If we add the prospect of new tariffs from Trump and a possible trade war, this further weakens Europe's growth prospects”continues the analyst.