EUR/USD could reach parity amid an energy war – MUFG EURUSD Banks RussianFederation Gas
that Russia has cut gas supplies to Poland. Energy risks are set to hurt EUR further, economists at MUFG Bank report.“A wider cut off of supply could see gas prices double from yesterday’s close to around EUR 200 MWh. A wider cut-off would have a significant negative impact on sentiment and would have further negative consequences for the euro.”
“Talk of EUR/USD reaching and possibly breaching parity even just a few weeks ago seemed a tall order but the declines now on this potentially damaging development means such a scenario is no longer such a tall order.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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