Natural Gas Surges as EUR/USD Gains: Market Shifts in Focus

Yesterday, natural gas prices jumped by over 5%, marking a strong recovery from the recent downturn which saw prices reach the lowest level since early April 2024. This surge has pushed prices to their highest levels since July, signaling a potential shift in market dynamics with the primary driver behind this rebound being the forecast of rising temperatures over the next 6-10 days, which is expected to increase demand for natural gas, bringing it close to the 5-year average.  

This increase in demand comes at a crucial time as Europe is also seeing its natural gas prices inch closer to 40 EUR/MWh and as we move further into the week, it will be important to monitor how these temperature forecasts materialize and their continued impact on natural gas demand and pricing. Natural gas prices remain quite far from their all-time highs but with all the ongoing uncertainty, it remains to be seen if the price will continue its recovery or if it will pull back once again.  

Past performance is not indicative of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.  

Source: https://www.tradingview.com/x/pSaZ7pxZ/  

EUR/USD on the Rise: A New Cycle for the Dollar?

The euro has shown a remarkable recovery against the US dollar recently, as the EUR/USD pair benefits from growing expectations that the US Federal Reserve may soon accelerate the pace of interest rate cuts. This has put downward pressure on the dollar, which, coupled with recent movements in US yields and equities, may indicate that the dollar could be entering a new cycle. On the technical side, the EUR/USD pair has broken through a significant resistance zone, signaling growing uncertainty.  

However, this week brings several key events that could influence the market, including the release of the FOMC minutes and remarks from Jerome Powell at the Jackson Hole symposium. With the EUR/USD hovering around the 1.10 mark, it will be crucial to see if the pair can sustain this momentum or if a correction is on the horizon. All eyes are on the next steps from the Fed and how they might shape the future of the dollar and the euro. 

Past performance is not indicative of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance.  

Source: https://www.tradingview.com/x/d6qDwdPD/