Search
Close this search box.

Explore the world.

Assess underlying market conditions and fundamentals in the world's major economies.

World

Stay ahead.

Follow the biggest stories in markets and economics in real time.

Subscribe

Get insight into the latest trends and developments in global currency markets with breaking news updates and research reports delivered right to your inbox.

After signing up, you will receive regular newsletters from Corpay, and may unsubscribe at any time. View Corpay’s Privacy Policy

Market Wire: Euro Tumbles as Russia Confirms Political Motivations for Gas Shutdown

European natural gas prices jumped more than 35 percent and the euro slid this morning after the Kremlin appeared to confirm that gas flows through the Nord Stream 1 pipeline would not resume until Western sanctions were lifted. The Financial Times and the Interfax news agency quoted Russian press secretary Dmitry Peskov saying, “The problems pumping gas came about because of the sanctions western countries introduced against our country and several companies. There are no other reasons that could have caused this pumping problem”.

Russian energy giant Gazprom had previously claimed increasingly-frequent shutdowns were technical issues, resulting from an inability to repair turbines in Canada.

The euro briefly fell below the 99-cent mark, but is now grinding higher – suggesting that traders were well-prepared, with a full winter shutdown largely priced in ahead of Mr. Peskov’s words.

Separately, Foreign Secretary Liz Truss won the race to succeed Boris Johnson as the United Kingdom’s next Prime Minister. Truss has proposed a series of tax cuts and market interventions to shelter households against October’s potentially-catastrophic rise in energy prices. After falling almost 15 percent this year on a darkening economic outlook, the pound was little changed.

Karl Schamotta, Chief Market Strategist

Market Retreat Continues as Yields Climb
Hawkish Kashkari Comments Pour Cold Water on Markets
Market Momentum Fades After US Long Weekend
No news is good news
Dollar Cruises Toward Weekly Gain on Fading Easing Expectations
Twists & turns

Latest Analysis

Latest Analysis