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On May 26, nuclear energy company Oklo (OKLO.N) announced that it has been selected by the U.S. Department of Energy to enter into advanced discussions regarding receiving Cold War-era plutonium for use as fuel in nuclear reactors. Last year, it was reported that the Trump administration planned to provide U.S. power companies with approximately 20 tons of plutonium from dismantled nuclear warheads, intended as potential reactor fuel.On May 26th, it was learned from industry sources that the Securities Association of China recently launched a survey on the current status of conflict of interest management among securities companies. The survey questionnaire consists of 46 questions, covering eight dimensions: basic company information, management framework, business conflict of interest management, cross-business collaboration, group management and cross-border business, senior management conflicts of interest, and related-party transactions. Industry insiders believe that this survey questionnaire goes beyond basic questions like "Do you have a firewall system?" and delves into detailed management aspects such as "Who makes the decisions?", "How are they controlled?", "Is it controllable?", and "What happens when they cross borders?"The Hungarian central bank kept its benchmark interest rate at 6.25%, in line with market expectations.The Norwegian government: The Norwegian Ministry of Foreign Affairs has summoned the Russian chargé daffaires in Norway.On May 26th, Futures News reported that BP (BP.N) announced the immediate resignation of its chairman, Albert Manifold, following feedback from the board regarding governance standards, regulatory compliance, and personal conduct. Manifold assumed the chairmanship of the British energy giant last October. The company stated that after learning of several governance oversight and conduct issues that it deemed unacceptable, the board unanimously decided that he should no longer serve as chairman. BP indicated that Ian Tyler will temporarily assume the position. BPs share price fell as much as 9.3%, on track for its biggest one-day drop since March 2020.

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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