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Italys composite PMI came in at 53.6 in August, up from 52.5 in the previous month.Italys services PMI for August was 55.2, below the expected 54 and the previous reading of 52.5.September 3rd - According to the China Passenger Car Association (CPCA), preliminary statistics show that from August 1st to 31st, the national retail sales of new energy passenger vehicles reached 1.069 million units, a 4% decrease compared to the same period last August, but a 12% increase compared to the same period last month. Since the beginning of the year, the cumulative retail sales of new energy passenger vehicles have reached 6.737 million units, an 11% decrease compared to the same period last August. From August 1st to 31st, the national wholesale sales of new energy passenger vehicles by manufacturers reached 1.506 million units, a 16% increase compared to the same period last August, and a 4% increase compared to the same period last month. Since the beginning of the year, the cumulative wholesale sales of new energy passenger vehicles by manufacturers have reached 9.754 million units, a 9% increase year-on-year.Market news: Japan will hold a special parliamentary session in early October.On September 3, Foreign Ministry Spokesperson Guo Jiakun held a regular press conference. A reporter asked: Mexican Foreign Minister Velasco will visit China from September 6 to 7. How does China evaluate the current state of China-Mexico relations? What are Chinas expectations for this visit? Guo Jiakun stated that Mexico is a major country in Latin America and an important emerging market. China and Mexico are comprehensive strategic partners. For more than 50 years since the establishment of diplomatic relations, bilateral relations have continued to develop in depth, with fruitful results in exchanges and cooperation in various fields. The two sides maintain close coordination and cooperation in international and regional affairs. This visit is Mr. Velascos first visit to China since assuming the post of Foreign Minister in April this year. China looks forward to exchanging in-depth views with Mexico on bilateral relations and international and regional issues of common concern during this visit, continuously enhancing political mutual trust, deepening mutually beneficial cooperation, promoting the stable development of China-Mexico relations, and better benefiting the people of both countries.

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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