Research & Analysis

The European currency remains under pressure this week and continues its decline against the dollar; i.e. -0.30%, from 1.181 to 1.177.

The single currency continues to decline this week amid growing fears around the spread of the Delta variant in several countries.

At the end of this week, EUR/USD stabilizes at last week’s level of 1.188. As a reminder, it fell below 1.18 during the week, reaching its lowest since April 2021.

During this week, the dollar appreciates by + 0.6% against the euro. The EUR/USD pair fell to 1.187 against 1.194 a week earlier.

The sharp drop in the EUR/USD parity recorded last week was readjusted this week. The euro appreciates against the dollar by + 0.6%, going from 1.186 to 1.194 over the week.

The pandemic has put a spotlight on the continent’s fragile economy, but there is a path forward to help vulnerable countries climb out of a debt pit.

Fed pushes dollar to 2-month high. During its meeting this week, the Fed announced its intention to raise interest rates by 2023.

EUR/USD reacts to inflation Data. The EUR/USD pair moved this week from 1.210 to 1.211, down -0.48% in comparison to the last week.

We had three reasons to believe that the SSA economies would be rather resilient facing the Covid-19 pandemic. We were referring to a foreseeable natural immunity of the Region citizens, to a pressure on the authorities to ease the barrier measures as well as to a limited exposure of SSA’s countries to the tourism sector.