Forex

Euro under pressure as electricity, gas prices surge

2022-08-17 12:44:56 GMT (Economies.com)

Euro declined in European trade against dollar, almost hitting three-week lows as the energy sector continues its collapse in Europe, with gas and electricity prices surging in Germany.

 

Dollar rose to near multi-week highs ahead of the Federal Reserve's latest meeting minutes, which might bolster the case for multiple more rate hikes this year. 

 

EUR/USD fell 0.2% to 1.0149, after rising 0.1% yesterday, the first profit in three days away from three-week lows at 1.0122. 

 

Energy Crisis

 

The energy sector continues its collapse with standard energy prices surging above 500 euros in Germany for the first time, pressuring businesses. 

 

Germany energy prices rose 5.2% to 502 euros per megawatt\hour, a 500% increase from last year. 

 

The Dollar

 

The dollar index rose over 0.2% on Wednesday on track to hit three-week highs at 106.94 against a basket of major rivals. 

 

All of that comes ahead of the Fed's meeting minutes later today, which will include clues on the future path of policy tightening in the US. 

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