The euro has fallen further against the pound after Russia cut gas supplies to Germany after threatening to do so earlier in the week. Against the dollar, the euro regained substantial strength yesterday.
European gas prices rose almost 2% yesterday after Russia restricted flows through the Nord Stream 1 pipeline to less than 20% of its normal capacity. Russia has justified this cut as maintenance work, however, Ukraine has accused Russia of a “gas war”. Poland has pledged to be fully independent from Russian gas by the end of 2022.
Later today, we will see economic sentiment and consumer confidence for the eurozone, as well as inflation figures for Germany which has been teetering on the brink of recession.
