Analysts at Japanese financial giant MUFG maintain a short euro-dollar stance, arguing that the European currency faces a larger negative terms-of-trade shock from higher crude oil and natural gas prices. Their scenario analysis links a 60% crude rise to the EURUSD currency pair around 1.1300, with ranges of 1.16-1.18 in a benign outcome and 1.0700-1.1300 under a more severe escalation. “Based on our regression analysis and on how the dollar responds to a 10% jump in crude oil prices, the EURUSD drop of 3.0%-3.5% since the crisis began is consistent with the 50% advance from crude oil prices. Our analysis The post MUFG: Energy shock keeps euro under pressure appeared first on Financial Mirror .