Euro hovers near three-week low on grim outlook

Euro declined on Thursday against dollar once again, nearing three-week lows on grim economic outlook in Europe and rising European energy prices. 

Dollar rose to three-week highs after the latest Federal Reserve's meeting minutes, which maintained strong prospects for several more large interest rate hikes until March.

EUR/USD fell 0.3% to 1.0146, after rising 0.1% yesterday, the second profit in a row off three-week lows at 1.0122. 

Grim Outlook 

Analysts maintain the grim outlook for the European economy, especially as living costs surge due to higher energy prices.

There's a real risk that natural gas in Germany might be exhausted by the winter as supplies from Russia remain hindered. 

The energy sector continues its collapse with standard energy prices surging above 500 euros in Germany for the first time, pressuring businesses.

Germany energy prices rose 5.2% to 502 euros per megawatt\hour, a 500% increase from last year.

The Dollar

The dollar index rose 0.3% on Thursday for another session to two-week highs at 106.96, against a basket of major rivals. 

The Fed's latest meeting minutes paved the way for several more large rate hikes this year as inflation remains a high risk factor for the economy.