MARKET INSIGHT - The Rise in Natural Gas Prices in Europe May Provide Some Support for the Euro

Swissquote Bank analyst Ipek Özkardeskaya stated that the recent increase in natural gas prices in Europe could raise inflation in the Eurozone in the coming months and provide some support for the Euro. Europe is expected to face its coldest winter since Russia's invasion of Ukraine and the continent's abandonment of Russian energy supplies. She emphasized that gas reserves could deplete, which could increase prices and consumer costs. Özkardeskaya noted, "Such a situation could limit the European Central Bank's interest rate cuts and provide a foundation for the weakness of the Euro."