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On August 26th, it was reported that in July, total electricity consumption in China exceeded 1 trillion kilowatt-hours again, with electricity consumption for internet data services increasing by 40% year-on-year. Computing power is becoming a significant source of new electricity consumption. In August, the peak electricity load of a smart computing center in Changshu, Jiangsu Province, increased by over 70% compared to the same period last year. The peak electricity load of the computing power industry reached 200,000 kilowatts, accounting for approximately 4.1% of the citys total electricity load. The State Grid Changshu Power Supply Company stated that the computing power industry contributed nearly half of the citys increased electricity load, accounting for approximately 49%, reflecting that computing power load is gradually replacing seasonal air conditioning load as the core driver of electricity consumption growth this summer. In July, the electricity consumption of 106 computing power centers in Jiangsu Province exceeded 1.3 billion kilowatt-hours, a year-on-year increase of 31%, with supercomputing and smart computing centers accounting for over 80% of the total.The Bank of Thailand: The Monetary Policy Committee unanimously voted to keep interest rates unchanged.Dubai International Airport (DISA) reported on August 26 that passenger traffic fell by nearly a third in the first half of the year due to disruptions caused by the war in Iran, but expects demand to recover in the second half. DISA stated that passenger traffic reached 13 million in the second quarter, bringing the total for the first half of the year to 31.5 million. Despite a rebound in traffic in May and June, first-half traffic was still 31% lower than the record level set in the same period last year. The war in Iran has led to a global readjustment of air routes, repeatedly disrupting DISA. In May, the airport announced it had postponed its target of 100 million annual passengers by one year due to the significant drop in passenger traffic. Major Middle Eastern airlines Emirates, Qatar Airways, and Etihad Airways have all reduced operations and adjusted their international route networks to accommodate increased travel demand during the war. Several European airlines have also suspended flights to multiple destinations in the region and avoided the airspace of several Gulf states.August 26th - According to the Guangdong Branch of the General Administration of Customs, in the first seven months of this year, the import and export volume of comprehensive bonded zones (including cross-border industrial zones and bonded areas) in Guangdong Province reached 1.05 trillion yuan, a year-on-year increase of 32.3%, setting a new record for the same period in history and surpassing the trillion-yuan mark two months earlier than last year. While Guangdongs foreign trade has exceeded one trillion yuan for two consecutive months, the provinces comprehensive bonded zones continue to play a driving role, contributing 23.3% to Guangdongs foreign trade growth in the first seven months of this year.On August 26th, it was reported that on August 25th, the first cross-border highway shuttle service along the Western Land-Sea New Corridor successfully completed a trial run of documents compatible with the United Nations Convention on Transferable Documents of Goods. This cross-border highway shuttle, fully loaded with general-purpose equipment and other goods, departed from the Chongqing Nanpeng Bonded Logistics Center, crossed the border at the Friendship Pass, and headed directly to Vietnam, covering a distance of approximately 1400 kilometers. This trial run, based on the United Nations Convention on Transferable Documents of Goods, marks a significant leap forward in the transformation of cross-border highway transport documents into documents of title.

EUR/USD Recovers from 50-Day SMA as US NFP Report Is Released

Drake Hampton

Apr 01, 2022 10:17

Discussion Points Regarding the EUR/USD Rate

The EUR/USD is struggling to hold its gains from earlier this week after testing the 50-Day SMA (1.1173), and new data prints from the US may weigh on the currency, as the US Non-Farm Payrolls (NFP) report is expected to show more improvement in the job market.

 

With the US NFP report on the horizon, the EUR/USD is reversing from its 50-day moving average.

 

EUR/USD falls from a new weekly high (1.1185) as European Central Bank (ECB) Chief Economist Philip Lane calms speculation about a monetary policy shift, stating that "the degree of monetary policy stimulus put in place to address the pre-pandemic challenge of persistent below-target inflation can be gradually normalised towards a more neutral setting."

 

Lane continues, "the calibration of net purchases for the third quarter will be data-dependent and reflect our evolving assessment of the outlook," implying that the Governing Council is not in a hurry to normalize monetary policy, as the board member insists that "any adjustments to our interest rates will be gradual."

 

As a result, diverging monetary policy paths may continue to produce headwinds for EUR/USD as the Federal Reserve plans to implement a series of rate hikes over the coming months, and the NFP report may push the central bank to normalize monetary policy at a faster pace as the economy is expected to add 490K jobs in March.

 

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At the same time, the unemployment rate is expected to fall to 3.7 percent from 3.8 percent during the same period, the lowest reading since February 2020, and this development may force the Federal Open Market Committee (FOMC) to adjust its exit strategy at the next interest rate decision on May 4, as the central bank "expects to begin reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities at a coming meeting."

 

Until then, the EUR/USD may struggle to maintain its gain from the yearly low (1.0806) as the FOMC normalizes policy ahead of its European counterpart, while the retail mood tilt appears certain to continue, as traders have been net-long the pair since the middle of February.

 

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The number of traders net-long is 9.25 percent greater than yesterday and 10.55 percent lower than the previous week, while the number of traders net-short is 16.67 percent lower than yesterday and 1.78 percent lower than the previous week. The decrease in net-long interest has reduced crowding behavior, as 63.95 percent of traders were net-long EUR/USD earlier this week, while the decrease in net-short position comes as the currency manages to test the 50-Day SMA (1.1173).

 

Having said that, the EUR/USD may continue to pull back from the moving average as the US NFP report is expected to show further improvement in the labor market, and the advance from the yearly low (1.0806) may turn out to be a correction in the broader trend given the ECB and FOMC's diverging paths.