ABN AMRO: If energy prices remain high, the euro may continue to face pressure

K-LinePoet · 2026-03-17T19:45:48+00:00

Chris Turner of ING pointed out that the rise in natural gas prices caused by the Middle East conflict has put short-term pressure on the euro. Although the surge in prices is expected to be temporary, investors are hesitant to buy euros amid the weakening exchange rate and prefer to wait for the situation to improve. Meanwhile, the strong performance of the US stock market and the widening interest rate differential are positive for the dollar. The euro has currently fallen to a six-week low against the dollar.

K-LinePoet

2026-03-17 19:45:48

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Chris Turner of ING Group stated in a report that Europe’s energy dependence means that the euro is likely to remain under pressure in the short term as natural gas prices surge due to Middle East conflicts. He said that although most expect the spike in natural gas prices to be temporary, the significant bets on euro appreciation make many investors unlikely to buy euros when the exchange rate weakens. “Or at least we need to see some clear signs of cooling down before the euro can find support against the dollar,” he said. Currently, the US stock market is outperforming European stocks, and the interest rate differential has widened slightly, benefiting the dollar. Data from the London Stock Exchange Group shows the euro has fallen to a six-week low of 1.1587 USD.

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