Euro's Gains Seen Limited Due to Higher Natural Gas Prices, Fed Minutes
Dow Jones
Aug 19
0910 GMT - The euro's rise against the dollar is likely to remain contained amid elevated European natural gas prices and ahead of the Federal Reserve's meeting minutes at 1800 GMT, ING's Chris Turner says in a note. Rising natural gas prices are "bad news for Europe and leaves manufacturers at a comparative disadvantage relative to the U.S.," he says. However, high energy prices maintain the restrictive policy stance of the European Central Bank where chief economist Philip Lane warned Tuesday of eurozone inflation staying at 3.0% all year, he says. The euro rises 0.2% to $1.1599. "Event risk from the FOMC minutes and higher natural gas prices warn against chasing the euro above $1.1600-$1.1620 today," Turner says.
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