Since the start of this week’s trading, the price of EUR/USD has been subjected to strong selling operations. As a result, it pushed towards the support level of 1.0122 before settling around the level of 1.0166 at the time of writing the analysis. The markets were strong with the announcement of the growth rate of the euro zone economy, then the announcement of the US retail numbers. The most important factor for the current market strength is the content of the minutes of the last meeting of the US Federal Reserve.
Analysts say that the recent developments in the energy markets in the Eurozone maintain the case for further depreciation of the Euro. Accordingly, the single currency in the Eurozone extended below the recent highs against the dollar and the British pound due to energy market developments which showed the European standard energy prices rising above €500 for the first time.
The developments threaten to put more pressure on businesses in the region in the coming months.
German energy for next year rose 5.2% to 502 euros/megawatt-hour on the European Energy Exchange on Tuesday. This represents a 500% increase in the last year. Commenting on this, Ole S Hansen, commodities analyst at Saxo Bank, says the EU’s gas and energy situation continues to deteriorate with the euro suffering as a result. European gas prices continued to rise as European countries continued to put pressure on demand in order to fill storage tanks before winter, amid continued pressure on supplies from Russia.