EUR/USD 1.13684
0.012%
Gold 4046.63
-0.734%
Oil 79.920
-1.540%
USD/JPY 163.773
0.024%
GBP/USD 1.32996
0.090%
GBP/JPY 217.817
0.134%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On July 28, the Ministry of Finance and another department announced that for land exempted from urban land use tax in accordance with the provisions of the "Regulations of the State Taxation Administration on the Collection and Exemption of Land Use Tax in the Power Industry" and other documents, urban land use tax will be levied at half the amount payable from September 1, 2026 to August 31, 2027; from September 1, 2027, urban land use tax will be levied in full.On July 28th, Ebury analyst Matthew Ryan stated that the UKs public finances are under pressure, leaving the government with little room for further policy easing. Ryan pointed out that the UK government debt is approximately 100% of GDP, and the UK also has one of the highest borrowing costs among developed economies. Against this backdrop, any indication that the new Chancellor of the Exchequer plans to relax fiscal rules, even with minor adjustments, could undermine market confidence in UK fiscal discipline and trigger a new round of sell-offs in UK assets. Analysts believe that the UK government needs to strike a balance between stimulating economic growth and maintaining fiscal credibility, and the uncertainty surrounding fiscal policy is likely to continue to affect the performance of the pound and the UK government bond market.Ministry of Finance and State Taxation Administration: Adjustment of urban land use tax policy for some energy and resource industry enterprises.Japans nuclear regulatory agency stated that after inspection, no abnormalities were found at the Ikata, Genkai, and Sendai nuclear power plants following the earthquake.The China Earthquake Networks Center officially measured a 6.8-magnitude earthquake at 15:27 on July 28 in Kyushu, Japan (32.65°N, 130.75°E), with a focal depth of 10 kilometers.

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

 EUR:USD.png

 

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.


Suggestion