The euro fell to a two-decade low of 0.9903 against the U.S. dollar.

Strategists are “definitely biased towards further euro depreciation,” says a head strategist at Citi Bank.

The euro traded at a two-decade low of 0.9903 against the U.S. dollar Tuesday morning, with analysts predicting the single currency will continue to slide..

“This is the primary point of euro vulnerability now,” Costa said.

“Our outlook and our trades and our position on the strategist side are definitely biased towards further euro depreciation from where we are now,” Luis Costa, head of CEEMEA strategy at Citibank,

The ongoing conflict in Ukraine and mounting inflation across both regions.The world second-largest economy has struggled with the aftermath of the country’s worst Covid-19 outbreak since the start of 2020.

Wholesale gas prices in Europe rose sharply on Monday after Russia announced unscheduled maintenance on its main pipeline to Germany, Nord Stream 1, while heat waves have put additional strain on energy supplies.

Let’s not forget there is an additional layer of complexity here from the China slowdown.

China missed GDP expectations with growth of just 0.4% in the second quarter.