The eyes of all of Europe are on a pipeline. Economists at Commerzbank expect the EUR/USD to push lower if there is a ‘technical’ delay to the resumption of the gas supplies.

The pipeline thriller

“The threat of an energy crisis in Europe is the sword of Damocles hanging above the EUR exchange rates and is putting pressure on them. Prior to an end of the pipeline maintenance work (middle of next week) things will not improve. And any day longer than planned these take, might put additional pressure on the euro.”

“I don’t want to sound alarmist, but a ‘technical’ delay to the resumption of the gas supplies, with all the drama that causes: the Russian side is unlikely to resist that. At that point, EUR/USD could easily dip below parity.”