On Tuesday, the euro traded at a two-decade low of 0.9903 against the US dollar, with analysts predicting further declines for the single currency.
"Our outlook and our trades and our position on the strategist side are definitely biased towards further euro depreciation from where we are now."
- Luis Costa, Head of CEEMEA strategy at Citibank
In Europe, gas prices rose sharply following western sanctions on Russia due to the war in Ukraine. EU member states are now scrambling to prepare for the coming winter.
The economic slowdown in China following the country's worst Covid-19 outbreak since the start of 2020, resulted in a GDP growth of just 0.4% in the second quarter.
The economic situation in China hits Europe with a considerably higher magnitude when compared to the impact in the States.
Meanwhile the widening difference in interest rates between the US dollar and the euro, has strengthened the dollar, but analysts are not sure if it will last.
