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U.S. EIA natural gas inventories for the week ending February 6 were -249 billion cubic feet, compared to an expected -257 billion cubic feet and a previous -360 billion cubic feet.According to the Financial Times, the BBC plans to cut hundreds of millions of pounds in costs in its latest restructuring plan.February 12th - Data released Thursday by the National Association of Realtors (NAR) showed that U.S. pending home sales fell to an annualized rate of 3.91 million units in January, a decrease of 8.4% month-over-month, marking the largest monthly drop since April 2022 and far below the market median expectation. The blizzards and snow that swept across much of the country in late January likely delayed a large number of contract settlements. In the hardest-hit South—the largest home sales market in the U.S.—sales plummeted 9% to an annualized rate of 1.81 million units; sales in other parts of the country also declined significantly. "Lower-than-usual temperatures and higher-than-usual precipitation in January made it more difficult than usual to determine the underlying drivers of the sales decline and whether this months data is an outlier," said Lawrence Yin, chief economist at the NAR, in a statement. With mortgage rates recently falling and home price increases slowing, signs of improved affordability are becoming a bright spot in the housing market. The NAR Housing Affordability Index climbed to its highest level since 2022 last month, but remains well below pre-pandemic levels. Without sustained improvements in affordability, the housing market recovery may be a long and arduous process.Japanese digital financial platform PayPay has filed for an IPO in the United States.The U.S. EIA natural gas storage figures for the week ending February 6 will be released in ten minutes.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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