The euro won't rebound from its slide against the US dollar this year as long as Europe's gas crisis drags on, Societe Generale says

The euro is unlikely to recover from multi-year lows against the US dollar until Europe sorts out the natural gas crisis, according to a report.

The euro was close to parity against the US dollar. The shared currency has fallen more than 12% against the US dollar this year, its lowest point in two decades.

The euro has been "crushing" by Europe's position as a gas importer due to rising energy prices in the US, according to Kit Juckes.

The euro will be anchored as long as the energy crisis continues. I don't think there will be a significant rebound for the European currency until we get through the gas crisis.

Natural gas prices have gone up in Europe. Moscow was hit with sanctions after Putin ordered the invasion of Ukraine.

Electricity prices have reached record highs due to soaring natural gas prices, stoking expectations that the pressure will push the EU economy into recession.

Juckes said that it's harder to see a bounce before the end of the year because of the current forecasts.

The strategist pointed to the high energy prices of the past. Both European and US terms of trade were hurt when oil prices rose, according to Juckes.

The relative effect is different this time. The euro is highlighted by the scale of the challenge.

He said that the terms of trade between the US and Germany are so dramatic that it is more important than what the Fed or the European Central Bank are doing.

At its September meeting, the European Central Bank is expected to raise its benchmark interest rate by 50 basis points. It hiked its key interest rate by 50 points in June. The fed funds rate is expected to be raised by the Federal Reserve. The key US rate has been raised four times in the next five years.

SG Cross Asset Research/Forex