The euro broke below the parity level (1.0000) against the US dollar again on August 23, 2022, following a fresh wave of selling pressure prompted by deteriorating risk sentiment in Europe. The latest movement of the EUR/USD is not driven by the widening of interest rate differentials between the Fed and the ECB this time, but rather by the broadening of the price differential between European and US natural gas. The US Henry Hub’s discount to the European Dutch TTF widened to a record high of $63/MMBtu as Europe gas crisis worsened after Gazprom decided to temporarily stop gas supplies through Nord Stream. (full story)