The euro Currency slumped in New York session trading. That is especially after Moscow announced their new sanctions threatening European gas supplies. 

EUR/USD stabilized the position in the range of 1.0396 when this news was written. It was occured at the Asian session (May 13), but briefly touched a low record since January 2017 at the level of 1.0353. 

The euro last night was also battered against the pound sterling, the Japanese yen and other major currencies in the market so far. There is another thing which now is becoming a focus. 

The Russian government has blacklisted 31 companies with parties banned from carrying out transactions and entering Russian ports. 

The European Gas Benchmarks is Increasing Significantly 

The sanctions include supply cuts for gas pipeline operators in a number of countries that have imposed sanctions on Russia. Those are included the EURoPol GAZ SA (Poland) and Gazprom Germania (Germany).

Meanwhile, the operator of the Ukrainian gas pipeline reported that Russian occupation forces were siphoning Their gas flows into Europe passing through the Sokhranivka transit point. 

The series of events illustrates Russia's readiness to expand the feud and exacerbate the energy crisis in the Euro area. The price of european gas benchmarks immediately skyrocketed.

Based on the data, it increased by more than 20%, while the German stock exchange plunged more than 2%. Both of these things has the different position level. 

This Worse Crisis may Push a Recession in Europe

Market participants are still considering the extent of the implications. That is especially due to this situation which is going forward on European assets. 

The problem is that an increasingly severe energy crisis could plunge Europe into recession. Kit Juckes As an analyst and expert stated his opinion due to these overall situations. 

He said that The bottom line is That they cannot accurately assess the risk of disruption to European gas supplies. However, if this happens, the risk of EUR/USD breaking parity will be huge.

It makes sense amidst this situation. Besides that, it naturally hinders the opening of a long-term position in the euro. This opinion is supported by the other economists and experts. 

Euro is Still in a Middle Position Until Now

The EUR/USD pair is strongly tried to maintain the support area at around 1.05 at the beginning of the week. That was armed with a number of hawkish statements from European Central Bank (ECB) officials. 

However, the potential for an ECB rate hike in July appears to be inadequate to stem the euro sell-off. Until entering the last half of the Asian session today, EUR/USD has not been able to return above the 1.04 threshold.

They stuck in their position and wait for a further situation to change the level. Elsewhere, The safe haven currencies of the US dollar and the Japanese yen are the main destinations.

That is especially for capital flight of Euro investors in the middle of this situation occured in the market. EUR/JPY plunged more than 2.5 percen Based on the data released. 

The EUR / GBP Pair Was Also Plunged

The position owned by that EUR / JPY pair is the lowest one in two months period. In a further detail, their level was in 132.66. The declining trend like this was followed by another currency pair. 

One of them is the EUR/GBP which also plunged about 1% to the range of 0.8500s. The United Kingdom escaped the direct impact of this latest Russian action.

They are having just received abundant shipments of LNG from the US and the Middle East. Gold prices held at a three-month low of around $1825 per troy ounce following the continued strengthening of the U.S. Dollar.