Reuters reported on Monday that the key market gauge of long-term Eurozone inflation expectations fell below 2% for the first time since March.

Despite, record-high inflation rate in the old continent, with the annual figure at 8.6% in June, and no signs of peaking as yet, the inflation expectations have dipped back below 2%.

With increasing odds of a recession in the Eurozone amid a worsening gas crisis, there seems to be a little reprieve for the shared currency.

“Nord Stream I, the biggest single pipeline carrying Russian gas to Germany, starts annual maintenance on Monday. Flows are expected to stop for 10 days, but markets fear the shut-down might be extended due to war in Ukraine and could disrupt plans to fill storage for winter,” per Reuters.

Market reaction

At the press time, EUR/USD is losing 0.65% on the day, trading at 1.0114.