Natural Gas Surge Shifts FX Market Dynamics as Energy Concerns Mount

Natural gas prices spiked 8.2% overnight, triggering significant movements across forex pairs as traders reassess energy-related currency exposures. EUR/USD fell 0.2% (25 pips) to 1.0545 as Europe's energy vulnerability resurfaces ahead of winter demand. USD/JPY climbed to 154.60, gaining 0.3% as safe-haven flows favored the dollar over the yen. The energy shock has shifted retail sentiment, with positioning data showing increased bearish bets on EUR and bullish dollar positions. Gold retreated 0.5% to $2,735 as rising yields reduced the metal's appeal. Technical indicators suggest EUR/USD faces resistance at 1.0580, while support builds at 1.0520. The natural gas surge particularly impacts European currencies due to the continent's energy import dependence. Traders should monitor energy market developments and their potential spillover effects on currency valuations, especially for commodity-linked and energy-dependent economies.