NATURAL GAS JUMPS 4% ON MONDAY AS PRESSURE BUILDS ON EUROPEAN MARKET

• Natural Gas prices are popping back above $1.80.
• Asian Gas traders are flocking into the European market, creating an imbalance between buyers and sellers.
• The US Dollar Index trades in the mid-103.00 range ahead of two big central bank meetings.

Natural Gas prices (XNG/USD) jumped this Monday back above $1.80 as Asian traders appear to be operating again in the European Gas futures market. This creates an imbalance in the already fragile European gas market, increasing doubts over whether the old continent will be able to restock its reserves ahead of the next heating season. Although the reserves have not declined as much as expected this winter, new deals to secure refilling are not taking place and Asian traders buy up the current cheap-priced contracts. 

The US Dollar trades steady this Monday ahead of two major central bank meetings:  the Bank of Japan (BoJ) and the US Federal Reserve on Tuesday and Wednesday, respectively. The BoJ is expected to move out from its negative rate policy, which would mean the first rate hike in 17 years. Meanwhile, the Fed will need to ease the nerves of markets having pushed forward the initial rate cut to September after stickier inflation data last week. 

Natural Gas is trading at $1.86 per MMBtu at the time of writing.