The pound saw a significant boost against the euro over the course of yesterday after Russia announced it was sanctioning several European energy companies.
Among the 31 companies sanctioned was a key Polish pipeline that supplies much of Europe’s gas. This news saw natural gas prices skyrocket which weighed heavy on the euro, causing it to fall against most major currencies.
These rising prices could potentially send the eurozone economy into recession, threatening the likelihood of any interest rate hikes from the European Central Bank.
It was also revealed yesterday that Finland hopes to join Nato “without delay”. Russia has warned of “retaliatory steps”.
It’s a fairly quiet day for data today with the key release being Michigan Consumer Sentiment figures for May.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
