EUR/USD Unfazed by Record Gas Prices Ahead of ECB Rate Hike

The EUR/USD held steady above 1.1600 on Tuesday as European gas prices reached a three-year high, despite expectations of a rate hike by the European Central Bank (ECB) on Thursday.

The Dutch front-month gas price rose to its highest since January 2023, trading near €75.00 per megawatt-hour, which is 128% above last year's level. European storage is only 67% full, despite less than a month remaining before the heating season begins.

The ECB is expected to raise the deposit rate from 2.25% to 2.5%, but this may not have much of an impact on the currency due to the rising energy prices and the bloc's reliance on imported gas.