Rates as of 0500 GMT

Market Recap

Its gas, gas, gas today! EUR was the focus as natural gas prices rose 21 to hit their highest level in more than four months, leading to broadbased EUR selling. EURCHF was the main feature it had a 2standarddeviation day.

On a conference call, Russian officials said another turbine from the Nord Stream 1 pipeline has problems, and will need maintenance. That would reduce the flow of gas to a level that would require rationing. This bad news came along with a Bloomberg story saying that Russia is likely to keep vital gas flows to Europe at minimal levels as long as the standoff over Ukraine continues.

Meanwhile, EU energy ministers agreed to cut their gas usage by 15 with the potential for the reduction target to be made mandatory if flows from Russia are severely curtailed. The deal isnt as restrictive as had been hoped because in order to reach an EUwide agreement, the ministers had to agree to allow member states a lot of flexibility to determine demand curbs.

Adding to the negative sentiment, Lufthansa canceled most flights from its Frankfurt and Munich hubs due to a strike. This news wasnt particularly related to the gas problem but it was just more bad news for Europe.

My question is, why are people selling EURCHF because of Europes natural gas problems? Where do they think Switzerland is located? According to the Swiss government

Natural gas meets about 15 per cent of Switzerlands energy requirements. In this country, it…