Forex News for 6th April, 2023

55forexbrokers 55forexbrokers
April 6, 2023
  1. The survey conducted by ISM revealed that the U.S. services sector slowed down more than anticipated in March, dropping to 51.2 from February’s reading of 55.1 and the estimated 54.3 print. The prices paid by service providers also decreased to the lowest point in three years, which is favorable for the Fed’s battle against inflation.
  2. Private sector hiring in March decelerated according to the ADP report, indicating a further slowdown in the economy. The payrolls only increased by 145K compared to February’s 261K surge and the projected 210K reading.
  3. The trade surplus of Canada significantly shrank from 1.20B CAD in January to 422M CAD in February, due to the decline in both exports (-2.4% m/m) and imports (-1.3%). The initial reading of January’s surplus was also revised to a lower figure of 1.92B CAD.
  4. The U.S. goods and services trade deficit grew from $68.7B to $70.5B in February, its widest in four months. The decrease in exports (-2.7%) was more significant than the reduction in imports (-1.5%).
  5. The stockpiles of U.S. crude oil decreased by 3.7 million barrels in the week ending March 31, exceeding the expected 2.3 million-barrel drop. This was due to strong export and refining demand.
  6. Loretta Mester, the Cleveland Fed President, believes that rates still need to increase “somewhat” to achieve 2% inflation, with the Fed funds rate surpassing 5% and the real Fed funds rate remaining in positive territory for some time.
  7. RBA’s quarterly review acknowledged the increased global stability risks and the pressure on household budgets resulting from high interest rates.
  8. The industrial production of Germany climbed by 2.0% m/m in February, surpassing analysts’ expectations of only a 0.1% increase.
  9. Switzerland’s unemployment rate decreased slightly from 2.1% to 2.0% in March, the lowest level since November.
  10. GBP demand increased at the beginning of European session trading, despite the lack of direct catalysts. Investors will likely focus on the U.S. high and lower-tier releases, which could highlight recession risks in the U.S. and the rest of the world.
Author 55forexbrokers