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According to CNN: A US federal judge extended the ban preventing the National Guard from deploying to Chicago.Data shows that the size of the U.S. national debt reached $38 trillion for the first time.Tesla (TSLA.O): The company has sufficient liquidity to fund its product roadmap, long-term capacity expansion plans and other expenditures.On October 23, Tesla (TSLA.O) announced a lower-than-expected third-quarter profit, despite record sales of its electric vehicles, indicating that the company is facing pressure from changing US policies and rising costs. The companys financial report showed adjusted earnings per share of 50 cents in the third quarter. The average analyst expectation was 54 cents. However, quarterly revenue of US$28.1 billion exceeded market expectations. The company reiterated its statement from the previous quarter that it is difficult to measure how changing global trade and fiscal policies will affect its business and operations. Tesla believes that its performance depends on the broader macroeconomic environment and the speed at which it accelerates its autonomous driving efforts and increases production of key products. Analysts expect Teslas car deliveries to decline for the second consecutive year. Earlier this month, Tesla reported record third-quarter sales as consumers rushed to buy electric vehicles before the US tax credit policy expired on September 30, which gave the companys core automotive business a brief boost.Tesla (TSLA.O): Increased vehicle deliveries, growth in energy generation and storage, and expansion of services and other businesses all had an impact on revenue; however, regulatory credit income declined, and one-time FSD revenue recognition decreased year-on-year.

EUR/USD Expects Fourth Weekly Gains Above 1.0900 Despite The US Dollar's Rebound Advance Ahead Of US NFP

Daniel Rogers

Apr 07, 2023 11:42

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Despite a recent retreat, the EUR/USD bulls maintain control around 1.0920. This reflects the typical Good Friday inactivity and apprehension ahead of the US Nonfarm Payrolls (NFP) report released early in the day. The major currency pair was volatile on Thursday as a result of the US Dollar's initial rebound on fears of a recession, but ended the day unchanged as disappointing US data contrasted with stronger Eurozone data.

 

Fears of a recession in the world's largest economy were prompted by consecutive lackluster US data and falling US Treasury bond yields, giving USD bears a reprieve on Thursday morning. As traders prepared for the all-important NFP, the dollar's subsequent gains were reversed by another disappointing US employment report.

 

Despite this, US Initial Jobless Claims for the week ending March 31 rose to 228K from 200K anticipated and an upwardly revised 246K the prior week. Notable is the increase in Challenger Job Cuts from 77,77K to 89,703K in the given month.

 

Notably, Reuters fanned fears of a recession by citing the most recent decline in the preferred bond market indicator of Federal Reserve (Fed) Chairman Jerome Powell. The most reliable bond market indicator of an imminent economic contraction, according to Federal Reserve research, is the "near-term forward spread" between the forward rate on Treasury bills 18 months from now and the current yield on three-month Treasury bills.

 

According to Reuters, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated in prepared remarks on Thursday that the global economy is projected to expand by less than 3% in 2023, a decrease from 3.4% in 2022.

 

In other news, Germany's Industrial Production (IP) increased 0.6% year-over-year in February, versus market predictions of -2.7% and previous readings of -1.7%. Additionally, the monthly figures exceeded expectations by 0.1%, coming in at 2.0% compared to 3.7% previously. On Wednesday, Germany Factory Orders for February improved to -5.7% YoY from -12.0% previously revised down and -10.5% market expectations, while MoM growth came in at 4.8% compared to 0.3% expected and 0.5% previous readings.

 

Wall Street and US Treasury bond yields have both reduced weekly losses as a result of these strategies, but investors remain skeptical.

 

In the context of less liquidity surrounding the March US employment report, sporadic activity on the major markets can keep the EUR/USD inactive and prone to abrupt price swings. Notable is the fact that recent dovish Fed forecasts and disappointing US data generate expectations for a positive surprise and enormous price volatility thereafter.


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