Goldman Sachs: The expected duration of energy price shocks is crucial for some European currencies.

Goldman Sachs analysts said in a report that if the currencies of European energy importing countries were to experience more sustained weakness, it may require market expectations of longer-term disruptions in natural gas prices due to Middle East conflicts. They stated that compared to the rise in oil and gas prices following the Russia-Ukraine conflict in 2022, the current expectations in the European natural gas market reflect a more short-lived energy price shock. They also mentioned that a change in this situation is necessary to see a more enduring depreciation of European energy importing countries' currencies, including the Euro, Pound, Hungarian Forint, Polish Zloty, and Czech Koruna. The Hungarian Forint and Polish Zloty were "considered the most vulnerable currencies to the impact of rising energy prices."