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The euro hit a five-year low of 1.0408 against the dollar on a sixth straight daily decline after Russia halted gas flows to Poland and Bulgaria and threatened similar cuts. MUFG analysts said a wider gas cutoff could double European gas prices to about EUR 200/MWh.
Higher European energy costs could cut eurozone industrial and livestock output and weaken feed demand. A stronger dollar also raises the euro cost of dollar-priced feed ingredients.
poundsterlinglive.comGary HowesApr 28, 2022After 36 past bearish geopolitics events, Euro (USD per EUR) moved a median -1.0% over 5 sessions (22% higher; middle half -1.8% to -0.3%), and -0.7% over 20.
After 136 past bullish geopolitics events, Natural Gas moved a median +2.7% over 5 sessions (63% higher; middle half -1.8% to +8.8%), and +4.0% over 20.
After 89 past bullish geopolitics events, US Dollar (Broad) moved a median +0.5% over 5 sessions (74% higher; middle half -0.0% to +1.0%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Euro hit a new five-year low on a sixth straight decline as the Russian gas cutoff raised the risk of a doubling in European gas prices, hurting euro-area terms of trade and growth.
EUR/USD hit a five-year low on a sixth daily decline on energy risk, raising the broad dollar.
