Natural Gas prices are consolidating on Monday in both US and European trading.
Traders are selling Gas contracts as the substantially higher US rate levels could potentially hit global economic growth, weighing on Gas demand.
The US Dollar Index sees ample support towards 105.00 despite its downbeat performance last week.
Natural Gas (XNG/USD) dives back below $1.90 this Monday with selling pressure noticeable in the energy space. The pullback may be supported by expectations of higher interest rates for longer, with markets nervous that the first rate cut from the US Federal Reserve might not come before September. This could mean some sluggish growth ahead and less global demand for energy commodities such as Natural Gas.
The DXY US Dollar Index meanwhile sees further upticks this Monday after the positive undertone from the US Jobs Report on Friday, which smashed all expectations with a stellar performance of 303,000 against 200,000 expected. US yields increased by over 20 basis points in the US 10-year benchmark rate last week, which means expectations for that first rate cut are starting to reverse substantially.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.