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On August 23rd, SpaceX CEO Elon Musk stated: "Building a fully reusable orbital rocket is one of humanitys most challenging engineering problems to date, even more challenging than landing on the moon. This is why it remains unsolved." He added: "I am cautiously optimistic that Starship will achieve full reusability next year. Another key technology, orbital refueling, is relatively simple and, with luck, could be achieved next year as well. By then, human consciousness and life will be able to extend to other planets and even stars."According to Nikkei on August 23, the leaders of Japan and South Korea are scheduled to meet on Saturday as the two countries seek to enter a new phase of cooperation. Faced with the prospect of slow economic growth and declining exports in both countries, South Korean President Lee Jae-myung emphasized the need for cooperation. "It is necessary to create breakthrough economic cooperation," Lee said in a written interview with the media on Friday. During the summit, Ishiba and Lee Myung-bak are likely to discuss measures to facilitate the millions of tourists traveling between the two countries. Furthermore, Ishiba and Lee are likely to sign an agreement allowing citizens of both countries to obtain two working holiday visas.On August 23rd, local time, according to investigative documents disclosed by German authorities, the Nord Stream 1 and Nord Stream 2 natural gas pipelines were allegedly damaged by at least four time bombs that were transported to the Baltic Sea by a sailboat. Recently, a Ukrainian man was arrested in Italy on suspicion of sabotaging a Russian natural gas pipeline. German authorities believe that the arrested man planned and coordinated the attacks in 2022. According to the disclosed documents, the explosions on both the Nord Stream 1 and Nord Stream 2 were carried out from the Andromeda sailboat. There were allegedly six crew members on the sailboat, four of whom were divers, who placed bombs on the natural gas pipeline at a depth of 70 to 80 meters underwater. According to the documents, the bombs weighed between 14 and 27 kilograms.On August 23, Russias Sputnik News Agency discovered through social media that a new unit of Latin American mercenaries, called the "Special Latin Brigade," had emerged in the Ukrainian Armed Forces. A profile page created by the brigade on the social media platform X in August stated: "The Special Latin Brigade is a newly established brigade-level unit composed of Spanish-speaking Latin American personnel." Previously, the Ukrainian Embassy in Peru (which also oversees diplomatic relations with Ecuador and Colombia) had recruited mercenaries with military service experience to join the Ukrainian Armys 25th Airborne Brigade through its official website.On August 23, Russias First Deputy Permanent Representative to the United Nations, Dmitry Polyansky, said on the 22nd that Russia has requested the UN Security Council to hold an emergency meeting on the Nord Stream gas pipeline explosion. The meeting is scheduled to be held on August 26. According to Russian media reports, Polyansky said on social media that Russia has requested the UN Security Council to hold an emergency meeting on the Nord Stream pipeline explosion. "We will point out the delay in the German investigation and its lack of transparency to the Security Council."

As Fed Chief Powell's Testimony And The US NFP Approach, The Us Dollar Index Nurses Its Wounds Below 105.00

Alina Haynes

Mar 06, 2023 14:42

US Dollar Index.png 

 

US Dollar Index (DXY) consolidates its greatest weekly loss in seven weeks between 104.55 and 104.60 at the start of the crucial week comprising Federal Reserve (Fed) Chairman Jerome Powell's semi-annual Testimony and the US employment report for February. As a consequence, the index of the dollar against the six most important currencies encourages some risk aversion during a sluggish Asian session.

 

However, news from China's National People's Congress (NPC) annual session seems to have recently impacted on the risk profile as the dragon nation anticipates moderate growth of 5.0% for the current year, compared to market forecasts of 6.0%. Global concerns were also raised after the lowest annual Economic growth in decades, which had an effect on sentiment and the NZD/USD exchange rate. Outgoing China Premier Li Keqiang said, "China should support the placid growth of cross-Strait relations and progress the process of China's "peaceful reunion," but also take firm measures to oppose Taiwan independence."

 

It is noteworthy that the DXY suffered the previous week as a result of weaker US statistics and conflicting Fed discussions.

 

The US ISM Services PMI for February was 55.1, compared to 54.5 market estimates and 55.2 market predictions. The Price Paid sub-index of the PMI survey, which measures inflation, decreased to 65.6 in February from 67.8 in January but still exceeded analysts' expectations of 64.5. The New Orders sub-index increased to 62.6 from 60.4, and the Employment Index increased to 54 from 50. Prior to that week, the Conference Board's (CB) Consumer Sentiment survey and January's US Durable Goods Purchases both indicated weakening trends.

 

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, expressed new skepticism regarding the Fed's policy shift, stating that "the central bank could be in a position to pause the current tightening cycle by mid to late summer." On the contrary, San Francisco Federal Reserve Bank President Mary Daly said during the weekend that if data on inflation and the labor market continues to come in hotter than expected, interest rates will need to go higher, and stay there longer, than Fed policymakers projected in December, as reported by Reuters. It should be noted that the US Federal Reserve stated unequivocally in its semi-annual Monetary Policy Report that "Ongoing increases in the Fed funds rate target are essential." According to the article, the Fed is unwaveringly committed to returning inflation to 2%.

 

In response, the yield on 10-year US Treasury bonds rose to its highest level since November 2022, before falling as low as 3.95 percent. By the time of publication, however, S&P 500 Futures had posted minor losses, while Wall Street had closed with profits.

 

Moving on, the statement of Fed Chair Powell, statistics on inflation in China, and reports from the China National People's Congress can all provide short-term guidance for the US Dollar Index. The US employment report for February will then be crucial for DXY traders. If the current losing sequence of US data persists, bolstered by Powell's cautious remarks, the US Dollar could experience additional losses.


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