European natural gas futures are rising. Dutch TTF futures for September rose to €316.90 MWh at one point. After sharply rising at the beginning of the week, it remained at a high level with some adjustments, but today it has reached a high again. The euro has a heavy topside, not only against the dollar and the yen, but also against the pound and the Australian dollar.
The German Ifo Business Confidence Index announced today was 88.5, a further decline from the previous 88.7. Ifo economists had expected Germany’s economy to contract by around 0.5% in the third quarter, although the euro’s selling reaction was limited as it fell less than expected. The outlook is far from bright.
The natural gas problem is expected to keep the EUR’s topside under control.