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On February 24, two U.S. officials said that Yemens Houthi rebels fired surface-to-air missiles at a U.S. fighter jet and MQ-9 Reaper drone this week, but neither hit. The officials did not specify whether the attacks took place over the Red Sea or in Yemen. One of them said the incidents may indicate that the Houthis are improving their ability to hit targets.Futures News on February 24: Last Friday, the international commodity market generally fell, and the performance of crude oil can be described as diving, with a drop of more than 3%. 1. Obviously, even though crude oil has risen for several days before, it is still not a variety suitable for strong thinking. The latest data shows that the number of oil drilling rigs in the United States has increased by 7, indicating that Trump will implement his previous promise to reduce energy prices by increasing production, thereby easing inflation. At the same time, senior officials from the United States and Russia have recently had a series of positive contacts. In addition to the war issue, the repair of bilateral relations between the two countries is also discussed as a core issue. This will obviously make the market believe that the relationship between the two countries will warm up, and Russias previous crude oil export sanctions will be gradually lifted. Once the support from the supply side fades, oil prices will easily fall. After all, in the context of the transformation of the global energy industry, the market and major institutions are not very optimistic about the demand prospects for crude oil. The recent rumor that OPEC+ will postpone the production increase plan again is actually a good confirmation. 2. Then, for the 04 contract of WTI crude oil, we need to focus on whether $70 can be held. For the 04 contract of Brent crude oil, $74 is a very important price barrier. Once it cannot be held and is broken downward, it is a pattern signal in technical analysis that the decline may continue.On February 24, the article stated that innovation is endless and policy support also needs to be continuously optimized. There is still room for improvement in the intensity and efficiency of fiscal and taxation forces to support scientific and technological innovation. In terms of intensity, we will coordinate financial resources, increase investment in science and technology, further focus on basic research and national strategic scientific and technological tasks, and fully support the key core technology research. In terms of efficiency, we will deepen the reform of the mechanism for the allocation and use of fiscal science and technology funds, improve the performance of fund use, and give full play to the leverage effect of fiscal funds. Research and improve the structural tax reduction and fee reduction policies that focus on supporting scientific and technological innovation and the development of the manufacturing industry, study the tax system that is compatible with the new business format, promote policies that are more in line with the demands of the market and enterprises, improve the accuracy of policies, promote the direct and quick enjoyment of policy dividends, and help enterprises innovate and develop.According to German news today: Lindner, chairman of the German Free Democratic Party, announced his withdrawal from politics.Ukrainian President Volodymyr Zelensky congratulated the CDU/CSU and Merz on their victory in the German Bundestag election.

Forecast for Silver Price: XAG/USD corrects from $24.00 as USD Index recovers and US Employment is monitored

Alina Haynes

Apr 04, 2023 13:45

截屏2022-08-26 下午5.10.05_1024x576.png 

 

After failing to surpass the $24.00 resistance in the Asian session, the Silver price (XAG / USD) has corrected marginally. The precious metal has shown a slight decline in tandem with the US Dollar Index's recovery. (DXY). After establishing a buffer around 102.00, the USD Index has rebounded to near 102.15; however, the downside appears to be favored in anticipation that the Federal Reserve (Fed) will maintain a neutral posture on interest rates at its monetary policy meeting in May.

 

S&P500 futures are attempting to recoup all of the losses sustained in early Asia. The overall market sentiment is optimistic, so the demand for perceived-risk assets is robust. Prior to the United States Automatic Data Processing (ADP) Employment Change (March) data, which will be released on Wednesday, 10-year US Treasury yields have increased marginally to around 3.43 percent. According to the consensus, the US economy added 205K positions in March, compared to the previous report of 242K.

 

The need for a halt in the Fed's policy-tightening cycle will increase as a result of fewer job gains following a weaker ISM manufacturing PMI. According to the CME Fedwatch tool, over fifty percent of investors continue to anticipate an additional 25 basis point (bps) rate hike to 5.00-5.25%. However, a significant reorganization is anticipated after the publication of the Employment data.

 

Monday, Fed Board Governor Lisa Cook stated that the United States has both low unemployment and high inflation. Consequently, the Fed is presently focused on inflation, and the disinflationary process has begun, but we are not yet there. The commentary has provided the US dollar with some support.