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Stifel raised its price target for Microsoft (MSFT.O) from $450 to $530.Mizuho Bank lowered its price target for Intel (INTC.O) from $109 to $92.On September 4th, it was learned from the China Development Bank (CDB) that on September 3rd, CDB successfully issued RMB 5 billion of 3-year green financial bonds through the China Foreign Exchange Trading Centers issuance system at the Shanghai Clearing House, with an issuance interest rate of 1.27%. This marks the first time CDB has used online book-building to issue green financial bonds, effectively improving issuance efficiency and transparency. The projects involved in this green financial bond issuance were strictly selected according to the "Green Finance Supported Project Catalogue (2025 Edition)," with a green rating of G1 (the highest level). The funds raised will be primarily used for key areas such as green infrastructure upgrades, energy-saving and carbon-reducing industries, green and low-carbon energy transformation, and ecological protection, restoration, and utilization. This issuance represents a new attempt by CDB to optimize its bond issuance pricing mechanism and narrow the price gap between the primary and secondary markets, as well as a new exploration of empowering green and low-carbon financing through market-oriented methods.On September 4th, BNP Paribas economists stated in a report that the persistent energy price shock, coupled with the resilience of the Eurozone economy, suggests the European Central Bank (ECB) may raise interest rates once in September and once in December. Economists expect the ECB to raise rates next week, while potentially raising its economic growth and inflation forecasts, further supporting the case for tightening monetary policy. Continued high energy prices and a strong economy make a second round of effects more likely, although current signs are still limited. Economists indicated that policymakers will continue to view the risks to the inflation outlook as skewed to the upside.According to The Times, British Prime Minister Burnham will approve the new Jack Road gas field project in the North Sea in late September.

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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