EUR/USD 1.15389
0.092%
Gold 4327.30
-0.544%
Oil 80.467
0.053%
USD/JPY 159.353
-0.092%
GBP/USD 1.34964
0.081%
GBP/JPY 215.074
-0.014%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Sources say Goldman Sachs is in talks with potential investors about participating in Nvidias (NVDA.O) $500 billion AI funding round.On August 14, Hengfu Holdings (00641.HK) announced that trading in its shares on the Hong Kong Stock Exchange was temporarily suspended from 9:00 a.m. on Friday, August 14, 2026, pending the publication of further information regarding the placement of new shares.August 14th - Speculative investors are increasingly betting on another rate hike by the Reserve Bank of Australia (RBA) in November, as inflation remains above the central banks target. Swap market pricing currently estimates a 45% probability of a 25 basis point rate hike by November, up from 38% before Tuesdays RBA rate decision. Trading activity in the November 2026 interbank cash rate futures contract, traded on the Australian Securities Exchange (ASX) derivatives market, rose to a more than three-month high, indicating increased speculative interest. These bets suggest growing market skepticism that the RBAs tightening cycle is not yet over. Although policymakers kept rates unchanged this week, traders will continue to watch upcoming price and employment market data for clues as inflation remains above the RBAs 2%-3% target range.August 14th - According to foreign media reports, South Korean President Lee Jae-myungs approval rating has plummeted to a record low, reflecting growing public dissatisfaction with his housing policies. These policies have failed to cool the overheated real estate market, while the governments proposed real estate tax reform has also sparked concerns. A Gallup Korea poll released Friday showed Lee Jae-myungs approval rating had fallen to 44%, a 7-point drop from the previous survey released in July. The decline in support among younger voters was particularly pronounced, with only 30% of respondents in their 20s expressing support for him. Support for Lee Jae-myungs Democratic Party also fell by 3 percentage points to 41%, while support for the main opposition People Power Party rose from 23% to 25% during the same period.At the close of the morning session, most domestic futures contracts rose. Rapeseed oil and lithium carbonate rose by more than 2%, while industrial silicon, soybean meal, low-sulfur fuel oil (LU), fuel oil, live pigs, synthetic rubber, polysilicon, and coking coal rose by more than 1%. On the downside, palladium fell by more than 3%, silver and platinum fell by more than 2%, and stainless steel (SS) and gold fell by nearly 2%.

EUR/USD Expects Fourth Weekly Gains Above 1.0900 Despite The US Dollar's Rebound Advance Ahead Of US NFP

Daniel Rogers

Apr 07, 2023 11:42

 EUR:USD.png

 

Despite a recent retreat, the EUR/USD bulls maintain control around 1.0920. This reflects the typical Good Friday inactivity and apprehension ahead of the US Nonfarm Payrolls (NFP) report released early in the day. The major currency pair was volatile on Thursday as a result of the US Dollar's initial rebound on fears of a recession, but ended the day unchanged as disappointing US data contrasted with stronger Eurozone data.

 

Fears of a recession in the world's largest economy were prompted by consecutive lackluster US data and falling US Treasury bond yields, giving USD bears a reprieve on Thursday morning. As traders prepared for the all-important NFP, the dollar's subsequent gains were reversed by another disappointing US employment report.

 

Despite this, US Initial Jobless Claims for the week ending March 31 rose to 228K from 200K anticipated and an upwardly revised 246K the prior week. Notable is the increase in Challenger Job Cuts from 77,77K to 89,703K in the given month.

 

Notably, Reuters fanned fears of a recession by citing the most recent decline in the preferred bond market indicator of Federal Reserve (Fed) Chairman Jerome Powell. The most reliable bond market indicator of an imminent economic contraction, according to Federal Reserve research, is the "near-term forward spread" between the forward rate on Treasury bills 18 months from now and the current yield on three-month Treasury bills.

 

According to Reuters, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated in prepared remarks on Thursday that the global economy is projected to expand by less than 3% in 2023, a decrease from 3.4% in 2022.

 

In other news, Germany's Industrial Production (IP) increased 0.6% year-over-year in February, versus market predictions of -2.7% and previous readings of -1.7%. Additionally, the monthly figures exceeded expectations by 0.1%, coming in at 2.0% compared to 3.7% previously. On Wednesday, Germany Factory Orders for February improved to -5.7% YoY from -12.0% previously revised down and -10.5% market expectations, while MoM growth came in at 4.8% compared to 0.3% expected and 0.5% previous readings.

 

Wall Street and US Treasury bond yields have both reduced weekly losses as a result of these strategies, but investors remain skeptical.

 

In the context of less liquidity surrounding the March US employment report, sporadic activity on the major markets can keep the EUR/USD inactive and prone to abrupt price swings. Notable is the fact that recent dovish Fed forecasts and disappointing US data generate expectations for a positive surprise and enormous price volatility thereafter.


Suggestion