GERMAN GAS LEVY TO FUND ALTERNATIVE SUPPLY TO BEGIN IN OCTOBER
Trading Hub Europe is expected to announce the 2-3 cents per kilowatt hour (kWh) levy later today in an effort to fund alternative gas supply in the wake of inconsistent Russian supply. Germany’s cabinet agreed to the levy on the 4th of August, with the levy to run from October this year to April 2024.
KNEE-JERK ‘FED PIVOT’ ALREADY A DISTANT MEMORY
After Wednesday’s cooler US CPI data, markets wasted no time in pre-empting a Fed slowdown in the current rate hiking cycle which allowed EUR/USD to recover some lost ground, trading around 1.0368 briefly. Since then, it appears as if common sense has prevailed with a full retracement of the knee-jerk reaction.
