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Iranian Parliament Speaker Qalibaf: If our region cannot sell oil, then no one can sell oil.Iranian President: The Iranian people will not succumb to threats. We have always emphasized the importance of diplomacy and advocated resolving differences through political means.On July 23, Wang Yi stated that China highly appreciates the Papua New Guinea governments announcement of the closure of the "Taipei Economic Office in Papua New Guinea." This is another key measure by the Papua New Guinea government to implement the one-China principle, following the closure of the "Trade Representative Office of Papua New Guinea in Taiwan." It is a completely correct move, in line with the fundamental interests of Papua New Guinea and its people, and will further consolidate the political foundation of China-Papua New Guinea relations, inject strong momentum into the comprehensive strategic partnership between the two countries, and also provide a model for other countries to correctly handle issues related to Taiwan institutions.On July 23, Wang Yi stated that under the strategic guidance of the two heads of state, China and Brazil have made positive progress in jointly building a community with a shared future for a more just world and a more sustainable planet. The comprehensive strategic partnership between the two countries has always been at the forefront globally, and it is necessary for both sides to maintain strategic communication, strengthen strategic coordination, and deepen strategic cooperation. China will continue to support Brazil in safeguarding its sovereignty, security, and development interests, and believes that Brazil will, as always, respect and support China in safeguarding its core interests. China is willing to work with Brazil to implement the important consensus reached by the two heads of state, strengthen cooperation in areas such as aerospace, connectivity, and artificial intelligence, and provide greater support for their respective development. China welcomes Brazils accession to the World Artificial Intelligence Cooperation Organization to safeguard common interests and deepen mutually beneficial cooperation in the new round of technological revolution. Vieira stated that the leaders of Brazil and China maintain close communication, build high mutual trust, and jointly lead bilateral relations to a high level. Exchanges between Brazil and China at all levels are frequent, and bilateral trade reached a new high last year. Brazil looks forward to working with China to further deepen cooperation in areas such as finance and trade, and strengthen collaboration on multilateral platforms such as the United Nations and BRICS.The Federal Reserve accepted a total of $376 million from two counterparties in its fixed-rate reverse repurchase operations.

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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