First Time in 20 Years, the Euro Falls Below Dollar

The Euro is a single currency used by several European Union countries and has always been strong against the US dollar. But in July 2022, the euro falls below dollar in parity for the first time since 2002. This drop below parity against the dollar has fuelled recession fears in the euro area.

The History of the European single Currency

The euro banknotes and coins were introduced into circulation in January 2002. Prior to this, the euro was merely a unit of account for settling transactions across borders with the US and their other trade partners currencies. Since the currency’s circulation in 2002, the euro single currency has spent very little time below parity in its short two decade history. The last time it was reported that the euro falls below dollar was in October 2000 when it sank to an all-time low of $0.82.

Factors Affecting Euro Parity Against US Dollar

In 2022, the European single currency started the year on a strong note with a post-pandemic economic recovery. But surging European gas prices due to Russia’s invasion of Ukraine has raised recession risks. This risk is also affected by the fear that Moscow could further cut off gas supplies exported to the EU.

While the euro was experiencing a rocky interruption, the US dollar has remained strong. Amidst the heightened global uncertainty with global recession fears, the United States Federal Reserve hiked rates aggressively, benefiting the safe haven dollar in global foreign exchange reserves.

The European Central Bank has since introduced rapid rate hikes after their July 21 meeting. Stuart Cole, the head macro economist at Equiti Capital in London, said, “Gas rationing, stagflation, an expected recession, they are all good reasons to be bearish on the euro.” This statement was made shortly before the euro crossed below parity against the dollar. “These factors would make it harder for the European Central Bank to hike interest rates, which could further widen the interest rate differential with the US dollar.

Euro Falls Below Dollar, But Will It Continue?

Some economists from global banks say that the euro’s slide might continue before it will rise again on the currency markets. Until the economic outlook improves in this heightened global uncertainty, the euro will and euro area might face record high inflation and exacerbate recession risks. Even if the ECB increases interest rates, the US Central Bank is introducing more rapid rate hikes which draws more investments to the United States.

What The Banks Are Saying

The ECB has largely downplayed this currency fall to avoid inducing panic. As Euro falls below dollar, it increases the risk of price growth becoming entrenched above the ECB’s target rate of 2%.

Currently, the euro seems to have stabilized, now sitting slightly above parity with the US dollar. While the Euro fell below the dollar for the first time in 20 years, the global currency reserves are back on a  more stable footing.

Invest Safely in Luxury Real Estate

When euro falls below dollar parity, it fuelled inflation fears. Rising recession risks can make investors wary with their money on a global scale. Fortunately, real estate is always a solid choice for investments. Luxury real estate by Brittany Corporation has a well-known reputation as the gold standard in world-class living. Brittany homes are some of the best and most beautiful houses in the Philippines.

Brittany Corporation is the luxury real estate arm of Vista Land, and it offers world-class themed communities for families who want to live a luxury lifestyle. Their exclusive communities and enclaves offer residents a slice of paradise where they are free to experience Brittany living to its fullest potential. Brittany homes are located in three prime locations: Santa Rosa, Alabang, and Tagaytay. Each location takes inspiration from a world-class luxury destination, so residents not only live in some of the most beautiful houses in the Philippines but they also experience a luxury lifestyle offered nowhere else in the country.

Brittany Santa Rosa

Brittany Santa Rosa has three luxury enclaves located in Santa Rosa, Laguna. This location is the perfect spot where urban city sprawl and rural charm collide to provide the best of both worlds. Brittany living is all about luxury and convenience, so locations like this are always well-planned. These luxury communities are located in Laguna’s educational and commercial hub, giving residents and homeowners access to the best establishments and educational institutions.

Two of Brittany Santa Rosa’s luxury enclaves, Georgia Club and Augusta, are inspired by the grandeur of American colonial architecture, as seen in the American South. Brittany homes here have generous proportions and often feature lovely porches and gardens. Promenade, on the other hand, is patterned after the quaint English countryside, featuring English-style manors and wonderfully landscaped hedge gardens.

Vista Alabang

The Vista Alabang exclusive communities are located along Daang Hari and is conveniently close to Evia Lifestyle Center. It contains three luxury enclaves: Portofino Heights, Portofino South, and Amore at Portofino. These luxury developments transport you to the Italian countryside, with Brittany homes designed with influences from Italian architecture. Feel time slow down when you are surrounded by the most beautiful homes in the Philippines that exude old-world Italian charm and grace.

The Italian-inspired luxury communities of Vista Alabang will help you embody an Italian lifestyle that is carefully crafted for you by Brittany living. Enjoy scenic walks along landscaped gardens and feel free to make use of amenities like the swimming pool, clubhouse, playgrounds, and tennis courts.

Crosswinds Tagaytay

Crosswinds Tagaytay is a Swiss-inspired luxury community filled with hundreds of pine trees. Feel refreshed by nature as you are surrounded by the greenery and rolling hills of Tagaytay, set with the scenic backdrop of Taal lake. Crosswinds Tagaytay offers a Swiss mountain vacation experience, but they also have Brittany homes and condominiums for individuals looking for a permanent home and vacation spot.

The Grand Quartier and Alpine Villas offer luxury condominiums inspired by traditional Swiss mountain chalets. Individuals who prefer to design their dream home in Tagaytay also have a place set aside for them, as Lausanne at Crosswinds offers luxury lots for sale with sweeping views of the Tagaytay landscape.

Brittany Corporation Gives You Only the Best Homes

Brittany living is world-class luxury living. That has always been the brand’s mission. With each exclusive luxury development, Brittany continues to bring luxury lifestyle experiences to more and more homeowners.

Invest in a Brittany home today! Browse our website to see everything we have to offer, from luxury homes to classy condominium units. Follow us on LinkedIn and Youtube for more updates.

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