EUR/USD 1.18609
-0.086%
Gold 5062.02
-0.438%
Oil 64.562
-0.269%
USD/JPY 153.260
-0.005%
GBP/USD 1.36171
-0.081%
GBP/JPY 208.700
-0.072%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to Japans Jiji Press: Japan had previously requested a review of the Federal Reserves interest rates in January.According to the Russian newspaper Izvestia, citing the Russian Embassy in Cuba, Russia is preparing to ship crude oil and fuel to Cuba in the near future.February 12th - The China Passenger Car Association (CPCA) stated that February has 16 working days, and this years 9-day Spring Festival holiday is the longest in history, resulting in 3 fewer working days compared to the 19 working days in February 2025. Due to the typically weak car sales before and after the Spring Festival holiday, most automakers will take extended holidays, leading to a very short effective production and sales period in February. It is expected that Februarys car sales will reach an absolute low point for the year, potentially alleviating retail inventory pressure.The China Passenger Car Association (CPCA) reported that retail sales of new energy vehicles reached 596,000 units in January, a 20% decrease year-on-year.February 12th - According to data from the China Passenger Car Association (CPCA), exports of new energy passenger vehicles reached 286,000 units in January, a year-on-year increase of 103.6%. This represents 49.6% of total passenger vehicle exports, a 12.5 percentage point increase compared to the same period last year. Pure electric vehicles accounted for 65% of new energy vehicle exports (compared to 67% in the same period last year), with A00+A0 class pure electric vehicles, the core focus, accounting for 50% of pure electric vehicle exports (compared to 41% in the same period last year).

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