EU is on a pedestal. 1.03484 is the final bastion holding the | Market Demon (TRADERS)

EU is on a pedestal. 1.03484 is the final bastion holding the fort. Once it is breached, EU is going even further down. Perhaps the next ECB meeting will force this move to the downside.

The EU is also feeling the crunch in the energy sector and an embargo of Russian energy will push EU into recession considering the tight energy supply. The penultimate for the EU is will in the rest of 2022. Clock is ticking, EU is in a historic junction.

Recent upward pressure in Euro is driven by hawkish ECB members. The ECB has yet to do anything regarding monpol. July rate decision will provide a better view on how the ECB will move on monetary policy.

I do not think they have the room in the economy to move rates expeditiously unless a recession is just a casualty. Metrics on inflation has shown multiple double digit growth in various economies in Eurozone (Y-o-Y). Italy and Greece are also starting to feel the heat in their bond markets.

The future doesn't seem bleak but sure as hell is gloomy. All is now upon Lagarde and her team to navigate the EU and possibly the whole world of crisis.