Euro Falls Through Support as Gas Prices Surge

The euro-to-dollar exchange rate has fallen through its support level and is at risk of further losses, driven by surging European gas prices.

The TTF front-month gas prices surged following negative weekend developments in the Gulf, with Kathleen Brooks from XTB noting that the price of diesel and natural gas in Europe are climbing at faster rates than oil prices. The wholesale European benchmark rose to 83.77 euros per megawatt-hour on Monday.

The move has taken out the band that defined the market for a month, leaving the euro beneath its 100-day moving average at 1.1557. This level had previously held as the floor of the range.

The Federal Reserve's decision on Wednesday will also impact the exchange rate, with analysts expecting a rate hike and a signal that the central bank is finished raising rates for now.