"The former economic powerhouse is sinking deeper and deeper into the maelstrom of the energy-policy ghost train that the country has gotten itself into" - sentix.

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The Euro was lower alongside suggestions the Eurozone is now facing "catastrophic conditions" amidst an energy crisis and recent escalations in the Ukraine war, according to a much-watched economic survey.

October's sentix survey data now suggest the Eurozone economy is likely in a "very deep recession" after the overall index dropped to -38.3 points in October, the lowest level since May 2020.

Euro exchange rates were sharply lower on the morning of the release, with markets also expressing concern over escalations in the war in Ukraine and fears the U.S. Federal Reserve was prepared to hike the global economy into recession.

sentix asks individual and institutional investors on a weekly basis for their assessments of the capital markets, how they operate in the markets and what themes and topics play a role.

From these surveys, they calculate about 600 different indicators that provide exclusive insight into the decision processes of investors, virtually in real-time.

The current situation and expectations scores for the Eurozone fell again in October.

But it is the Eurozone's largest economy that is of particular concern.

"The sentix economic data for Germany signal a catastrophic state of the economic condition. The overall index as well as the situation fall for the 4th time in a row. Expectations again mark an all-time low!" says Manfred Hübner, Managing Director at sentix.

Germany's overall index fell to -37.4, marking a fourth consecutive monthly decline and the lowest since March 2009.

Hübner's assessment of the situation facing Germany is stark:

"The former economic powerhouse is sinking deeper and deeper into the maelstrom of the energy-policy ghost train

that the country has gotten itself into.

"The current government, and especially the Minister of Economics, Habeck, do not seem to be up to the magnitude of the task.

"And despite this miserable present, expectations fall to an all-time low of -41.3 points. Politicians have already been relieved of their duties for less."

The Euro is likely to remain under pressure against the Dollar and other currencies in this climate.

At the same time, the economic outlook for the Eurozone hardly offers investors a convincing alternative to those worried about the UK, hence the Pound-Euro exchange rate's relatively limited decline.