Germany’s federal government will ramp up efforts to counter the impact of runaway wholesale energy prices, which are delivering a blow to low-income households, Reuters reports, citing two policymakers.

Key takeaways

"We are working flat out on solutions for households that are now facing difficulties.”

"Our promise has always been that we will particularly protect people on a tight budget who find themselves suddenly caught out by social and global developments.”

“The government would prefer "unbureaucratic and prudent" solutions tailored to individual needs.”

“As for electricity and gas, the minister for environment and consumer protection, Steffi Lemke, told Reuters she would clamp down on suppliers who tried to profiteer from contract expiries, competitor insolvencies and people moving house.”

Market reaction

EUR/USD was last seen trading at 1.1330, down 0.25% on a daily basis, hit by an impressive US dollar rebound.