FX.co ★ EUR/USD above 0.9900 amid +30% spike in gas prices in Europe

EUR/USD, H4 chart

The euro plunged on Monday due to the escalation of the gas crisis in Europe.

Gazprom planned to resume gas flows through Nord Stream 1 on September 3. However, the pipeline is still shut. Gazprom says Nord Stream 1 must undergo technical maintenance.

In this light, gas prices in Europe swelled by +30% to 272 euros per megawatt hour.

Contracts for delivery in October are now trading at 256 euros per megawatt hour, up by +23%.

The current prices are +400% higher than a year ago.

The European Union is now taking emergency measures: Germany has announced a $65 billion plan to combat rising energy prices.

In the Baltic region, heating prices have climbed by +100%.

Against this backdrop, the euro showed a rather modest fall.

Expectations of a 0.75% rate hike on September 8 provide support for the euro.

Long positions on EUR could be opened from 0.9950 or on a bounce. A Stop Loss order could be placed at 0.9880, with a Take Profit order of no less than 100 pips.