- November 22, 2022
- Posted by: Stratford Team
- Category: Economy
- EUR/USD risks retreat on rising gas prices
- But longer-term EUR to be supported
- Could even reach 1.30 says Berenberg
Above: Europe is now heavily dependent on LNG deliveries to meet gas demand. Image © Adobe Images
Rising natural gas prices in the Eurozone are identified as a downside threat to the Euro by foreign exchange strategists, although analysts at one European bank say there is “less pain in the pipeline” for the bloc and its single currency.
Prices for Europe’s TTF natural gas benchmark for month-ahead delivery have risen back to 115 per MWh at the start of the week, having been as low as 97 in October.
“Natural gas prices are starting to rise already and if it continues to get colder on the continent then that might help push EUR/USD lower again as well,” says Brad Bechtel, Global Head of FX at Jefferies LLC.
Above: Gas consumption is increasing again in the Eurozone’s three largest economies. Image: Barclays.
Analysts say the tick…
