Natural Gas price starts to consolidate after a sharp rally in May.
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Natural Gas price (XNG/USD) trades roughly flat at around $2.70 during the European trading session on Wednesday. The price action is starting to turn choppy with market participants starting to unwind their overextended long positions in Natural Gas via options and futures contracts. The main driver for the unwind is the European gas storage reserve, which has broken above 70% for the first time since last winter.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, moves higher for a second straight day of gains after Monday’s decline. For the week, the DXY index still trades in a loss, ahead of the ADP private payroll number and the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI) data for May scheduled on Wednesday.
Natural Gas is trading at $2.68 per MMBtu at the time of writing.
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