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According to RIA Novosti: A senior Russian diplomat said that Russian and US representatives plan to hold another round of meetings in a third country in the next two weeks.On February 22, French central bank governor and ECB board member Francois Villeroy said in an interview published on Saturday that the European Central Bank may reduce its deposit rate to 2% by this summer. He said, "From where we are today, we may reach 2% by this summer." Villeroy also reiterated that industry consolidation among European banks may make them more competitive at the global level. On January 30 this year, the European Central Bank cut its deposit rate by 25 basis points to 2.75%. As concerns about sluggish economic growth replaced concerns about continued inflation, policymakers hinted at further interest rate cuts in March.On February 22, according to the automotive news website Electrek, Alef Aeronautics, a company invested by Musk, recently successfully demonstrated the take-off capability of its electric flying car in front of the public. Jim Dujovny, CEO of Alef, said that this successful take-off is not only a recognition of the companys ten years of efforts, but also a declaration to the world of the feasibility of a new mode of transportation. He emphasized that Alef is committed to creating a new era of transportation. At present, Alefs electric flying car has received 3,300 pre-orders, and the estimated price is about US$300,000.According to RIA Novosti: Russian Deputy Foreign Minister Ryabkov said that Russia has not yet received an agreement from the new ambassador to Washington.A Honda Motor executive dismissed a potential partnership with Foxconn, citing the limited benefits it would bring.

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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