On Tuesday, the Euro declined against the U.S. Dollar to its lowest level in the past 20 years as continued fears over the war in Ukraine, gas prices continuing to remain elevated, and recession fears across Europe rapidly increasing over the past few weeks. In addition, while the U.S. Federal Reserve has maintained its hawkish rhetoric despite the impending economic slowdown as a result, the European Central Bank has yet to hint at tightening monetary conditions. Therefore, as rates within the United States continue to remain elevated versus Europe, this induces further capital to flow into U.S. Dollar denominated assets, thus increasing the strength of the U.S. Dollar vis a vis the Euro. This has resulted in the Euro declining by 9% against the U.S. Dollar so far this year, and with inflation reaching a record 8.6% in June, the ECB may have no choice but to tighten into an economic slowdown.