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The Euro bids farewell to previous months’ heavy losses. The shared European currency tends to be stabilizing against the US dollar. The EUR/USD hovers around 1.0057 after reaching new week highs.
On Monday and Tuesday; however, the EUR/USD pair reclaimed parity and is hesitantly moving towards key resistance level. The Euro, from the viewpoint of fundamental analysis, might look weak, but recent bounce is expected to pick up momentum and pace if European natural gas prices continue their correction.
The EUR/USD fell in 2022 by more than 12% since January. Since the end of Q1, the downtrend worsened on Ukraine’s war because of Europe’s major energy crisis and the warnings of potential painful recession.
The Euro has begun to stabilize against the US dollar around the parity mark in recent days, including Wednesday as natural gas prices in Europe touched record levels, with the Dutch benchmark futures down more than 20% from August’s peak.
The corrective move in this fuel market was driven by news headlines that Germany’s stockpiles are refilled faster than the set plans.
The above development lowers the need for winter rationing measures to face any potential shortages.
