Russia Gas Standoff Turns ECB Into Sideshow for Currency Market
- FX market is focusing on Russia’s gas supply more than ECB
- ECB expected to lift rate on July 21 as pipeline repairs end
The gas receiving compressor station of the Nord Stream 1 natural gas pipeline in Lubmin, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The planned reopening of a key Russian gas pipeline next week may be a bigger deal for the euro than the first interest-rate hike in a decade by the European Central Bank.
Both are set for July 21. While the ECB’s plans to start lifting rates have been well flagged and hence priced in by markets, there’s more doubt over whether Russia will actually restore gas flows to Europe after maintenance on the Nord Stream 1 pipeline is completed.