The EUR/USD has been recently bid by ECB communication, the central bank is making headlines as 50bps rate hikes seem to be discussed by board members
Treasury yield-Bund differential are also favoring the exchange rate since EU session. The yield spread is down 178 basis points from circa 200bps seen earlier in the month
Another factor contributing to the EUR strenght is the decline in natural gas prices. We see the same negative relationship across different Europe gas contracts. This week, the EUR/USD is up 1.4% as the natural gas 1-mo forward declined 8.8%
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