Euro

 The euro fell to its lowest level in two decades on Tuesday as fears of a recession in the euro zone ramped up. Euro zone inflation hit a record 8.6% in June.

However, growing fears of a recession may limit the central bank’s capacity to tighten monetary policy. The July Sentix Economic Index on Monday showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020, pointing toward an “inevitable” recession.

Record-high inflation in Europe has been abetted by skyrocketing gas prices over recent months as a result of the sanctions on Russia's energy-Gas-oil and coal.

The dollar’s strength continues, meanwhile, as risk-averse investors seek a safe haven, and the U.S. Federal Reserve embarks upon what looks to be an aggressive rate hike regime.

The G7 keeps tightining the sanctions on Russia which impacts the G7.  Just a thought.