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On September 19th, the German government announced on the 18th that it had reached an agreement with the federal states on a package of tax relief measures, including a new round of fuel tax cuts and a fuel price cap, to alleviate the pressure on residents and businesses caused by persistently high fuel prices. According to the plan, the German government will reduce the energy tax, resulting in an actual reduction of approximately 17 euro cents per liter for gasoline and diesel. The measures are scheduled to be implemented by October 1st and will continue until the end of this year, with a total tax reduction of approximately 2.5 billion euros. This fuel tax cut is similar to the temporary measures implemented in May and June this year, which were expected to reduce tax revenue by 1.6 billion euros this year.On September 19th, Li Xunlei, Chief Economist of Zhongtai International, stated at the Tsinghua PBC School of Finance Chief Economist Forum that global economic imbalances are difficult to avoid; imbalance is the norm, and balance is temporary. Over time, any system will inevitably lead to imbalances; no system is perfect, therefore continuous reform and adjustment are necessary. Currently, in my countrys dual circulation economic model, the international circulation is relatively smooth, but the domestic circulation is not, and the latter is a problem that urgently needs to be addressed. Regarding smoothing the domestic circulation, Li Xunlei suggested promoting fiscal and tax reforms to increase the central governments financial resources. "Facts have shown that over the years, the efficiency of local government debt has been low. my countrys institutional advantages have not been well reflected in the fiscal and tax field. Promoting fiscal and tax reforms can greatly enhance fiscal support for investment and consumption," Li Xunlei said.Saudi Arabias Civil Defense Ministry announced that the alert for the Riyadh and Khairji areas has been lifted.Saudi Arabias civil defense has issued a warning of potential dangers in the Khairji region.Saudi Arabias civil defense has issued a warning about potential dangers in the Saudi capital, Riyadh.

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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