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On February 5th, Zhenghe Ecology announced that it had signed a strategic cooperation agreement with the Peoples Government of Miyun District, Beijing. According to the agreement, the two parties will cooperate in areas such as water security, water resource protection, and water ecological restoration. Furthermore, they will jointly plan and apply for national special fund projects and provide support in terms of funding and supporting measures. This cooperation aims to achieve synergistic progress in ecological protection and high-quality development; however, the specific implementation remains uncertain.On February 5th, Premier Li Qiang signed a State Council decree promulgating the "Decision of the State Council on Amending and Repealing Certain Administrative Regulations," which will take effect on March 20, 2026. This includes amending administrative regulations such as the "Urban Greening Regulations," adjusting the names of changed institutions and those involved in the transfer of responsibilities, to better adapt to the current administrative management system in my country. Amendments also include the "Regulations on Scenic Spots and Historic Sites," improving the relevant planning approval system and aligning it with relevant national reform policies. Amendments further include the "Regulations on River Management of the Peoples Republic of China," ensuring consistency with the newly revised "Administrative Reconsideration Law of the Peoples Republic of China" and other laws and administrative regulations. Finally, the "Regulations on Township Coal Mine Management" is repealed to better adapt to the needs of current reform and development practices and the realities of work in relevant fields.The Society of Motor Manufacturers and Traders (SMMT) reported that new car registrations in the UK rose 3.4% year-on-year in January, reaching 144,127 vehicles.Italys retail sales rose 0.9% year-on-year in December, compared with 1.30% in the previous month.Italys seasonally adjusted retail sales fell 0.8% month-on-month in December, compared with a previous reading of 0.50%.

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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