Natural Gas recovers a touch on Friday after its technical correction on Thursday.
European Natural Gas futures trade close to a six-month high as supply issues mount. .
The US Dollar Index trades higher, driven by a weaker Euro and Japanese Yen.
Natural Gas price (XNG/USD) recovers slightly on Friday after breaking below a key support level at $3.08 on Thursday. The risk for more downside comes with the political turmoil in Europe, particularly in France, that is causing distress in the European sovereign bond markets, hurting the growth potential for the bloc. On the other hand, a string of court rulings in favor of several big industrial companies against Russian Gas exporter Gazprom and supply issues in Australia are pushing up European prices close to a six-month high.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is trading in the green with help from its two main contributors accounting for 70% of the DXY: the Euro (EUR) and Japanese Yen (JPY). With a rather slim economic calendar ahead, only the University of Michigan Sentiment could bring some US Dollar weakness. However, the recent decline in the Consumer Price Index numbers (CPI) and Producer Price Index (PPI) numbers makes it more difficult for consumer sentiment to take a significant hit.
Natural Gas is trading at $3.04 per MMBtu at the time of writing.
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