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Iranian state media reported that Iran struck a U.S. warship in the Gulf of Oman that was approaching Iranian territorial waters and had a "command and control center."U.S. Central Command: Iran used drones to attack a civilian airport in a deliberate, calculated, and unjustified attack.U.S. Central Command: Iran claimed today that it did not attack the passenger terminal at Kuwait International Airport and that the damage was caused by U.S. missile interceptors. This claim is completely false.On June 4th, a spokesperson for the Iranian Islamic Revolutionary Guard Corps stated on June 3rd that its forces did not fire on the Kuwait airport target. The spokesperson claimed that the damage to the Kuwait airport terminal was caused by a malfunction of the US Patriot air defense missile system, whose missiles, after failing to intercept Iranian missiles, mistakenly landed on the terminal.June 4th - The Federal Reserves Beige Book indicated that overall, prices rose at a moderate to robust pace, with most districts reporting higher inflation rates than the previous report. Districts noted that energy costs related to the Middle East conflict were the primary driver of inflationary pressures, impacting sectors such as shipping, packaging, groceries, and fertilizers. Non-labor costs continued to rise faster than selling prices, raising broader concerns about squeezed profit margins. The ability to pass on higher costs varied across industries, particularly among consumer-facing companies. Some districts noted that businesses in multiple regions adopted strategies to cope with inflation, including supply chain optimization, product adjustments, reduced supply, and temporarily absorbing higher costs to maintain customer demand.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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