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June 6 - According to the European-Mediterranean Seismological Centre, a 5.4-magnitude earthquake struck the offshore region of Guerrero state in southwestern Mexico at 2:55 p.m. local time on June 5, with a depth of 32 kilometers. There are currently no reports of casualties or damage.On June 6th, company filings revealed that Google (GOOG.O) has agreed to pay SpaceX $920 million per month for computing power as part of a cloud services agreement that will last until mid-2029. SpaceX stated in a filing on Friday that Google will pay SpaceX monthly fees from October to June 2029, providing computing power including approximately 110,000 Nvidia GPUs, CPUs, memory, and other related components. The computing power will be gradually increased before September, with the fee decreasing accordingly. The filing shows that if SpaceX fails to deliver the agreed number of GPUs by September 30, 2026, Google has the right to terminate the contract and will have a one-month grace period. Furthermore, according to the agreement disclosed on Friday, either party has the right to terminate the agreement with 90 days notice.U.S. bank deposits rose to $19.333 trillion from $19.285 trillion last week.Standard & Poors affirmed Swedens credit rating at "AAA/A-1+" with a stable outlook.June 6th - According to the Financial Times, Meta Platforms (META.O) is considering raising tens of billions of dollars through a stock offering to seek new sources of capital to support Mark Zuckerbergs ambitious plans in artificial intelligence, following Googles record $85 billion stock deal this week. According to three sources familiar with the matter, executives at the social media company have been exploring "innovative" fundraising methods as the company plans to significantly increase its AI-related capital spending to as much as $145 billion this year, with further increases planned for 2027. The discussions have intensified following Alphabets successful funding round this week—which was driven by strong investor demand and increased by $5 billion from the original plan—sources said. However, Meta has not yet hired investment banks and may ultimately not issue new shares. One source cautioned that it is too early to say how the company has decided on its course of action, as all fundraising options are still under consideration.

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

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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.


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