We have long mocked the ECB for making the typical European mistake codified over a decade ago by Jean-Claude Trichet, when it launches rate hikes right into a recession (and after that, debt crisis).

Today, it finally appears that the market got the memo and sent the euro plunging crashing a 20-year low against the US dollar as traders bet that the European Central Bank will go slower on raising interest rates as the economy risks being tipped into a recession.

The artificially constructed common currency which was meant to keep German exports competitive, fell as much as 1.4% to $1.0281, its weakest level since December 2002. The losses came as money markets finally agree with us, and continued to trim bets the ECB will tighten as the growth outlook for the region darkens, with traders now eyeing the prospect of gas shortages as Russia cuts back on supplies.