Euro surges to $0.973 low against US dollar, analysts say UK and EU currencies caught in ‘Doom Loop’ – Economics Bitcoin News

On Friday, the official fiat currency of 19 of the 27 EU member states fell to $0.9732 against the US dollar. The fall comes as fiat currencies such as the yen, yuan and pound have struggled against the greenback over the past six months. Analysts say the pound and euro are in a “doom loop” and the US dollar is said to be the “only viable global economic” hedge.

Citigroup analysts say the greenback is the only safe haven in this macroeconomic environment

Strange days have found us in finance, fiat currencies, stocks, bonds and cryptocurrencies. The euro, the European Union’s currency, struggled against the US dollar on Friday, September 23 and fell below par as the weekend approaches. The euro is currently trading at $0.97 and fell to $0.9732 in the morning trading sessions (10 am ET). The euro has lost more than 1% against the greenback in 24 hours and is at a 20-year low.

The euro lost more than 1% against the greenback on Friday and other currencies such as the JPY, GBP, AUD and CAD against the US dollar. Retrieved September 23, 2022 at 10:25 am (ET).

Bloomberg contributors Sofia Horta E. Costa and Ruth Carson recently joined Citigroup Inc. They cited analysts and Canadian Imperial Bank of Commerce views. “The rise of the dollar has led many people to believe that the only safe asset is the US dollar,” the authors explained last week. The two received a research note from Citi strategists Jamie Fahey and Adam Pickett on developments around the US dollar.

“The only place to hide is in dollar cash,” Citi strategists say. A “deep recession” will lower inflation, the bank’s financial strategists say. Win Tin, chief currency strategist at Brown Brothers Harriman in New York, said the macroeconomic backdrop appears to favor the dollar. According to a Brown Brothers Harriman executive, “multiplying Fed tightening concerns could keep the dollar’s bid on the board in the near term.” A currency strategist at Brown Brothers Harriman continued:

As we said during this most recent dollar correction, nothing has fundamentally changed and the global backdrop continues to favor the dollar and US assets.

TD Securities strategists believe the Euro and Sterling are stuck in a ‘Doom Loop’.

Strategists at TD Securities believe the euro and pound are stuck in a “doom loop” and analysts at the firm think it could worsen over the next few months. TD Securities strategists with James Rossiter reported on Friday that the doomsday was caused by weak economic growth and rising energy costs.

The US Dollar Index (DXY) continues to rise and rise. 1-day DXY chart on September 23, 2022.

Analysts at TD Securities expect sterling to sink another 3% from current levels. Rossiter and the team at TD, the European Central Bank (ECB) and the Bank of England (BOE) can only do so much.

“While both the ECB and the BOE want to slow and eventually reverse this cycle, monetary policy can only limit the slowdown ahead of the coming winter,” currency analysts said. “Policymakers cannot produce the necessary energy supply.”

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1% drop , Adam Pickett , BoE , Britain , Britain , British pound , Brown Brothers Harriman , Citi Strategists , Currency Strategy Analyst , Dollar , Doom Loop , DXY , ECB , EU , EU’s euro , Euro , euro and pound , European Union Fiat , fiat currencies , Forex Markets , FX Markets , Greenback , Haven Assets , James Rossiter , Jamie Fahey , Markets , Safe Place , Sterling Pound , TD Securities Analysts , TD Securities Strategists , Fed , US Dollar , US Dollar Currency Index , WIN . Thin

What do analysts think about the euro slipping to $0.9733 against the US dollar and the fiat currency forecast? Let us know what you think about this in the comments section below.

Jamie Redman

Jamie Redman is the news lead at and a financial tech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about the disruptive protocols emerging today.

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