Natural Gas Trades Lower

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Natural Gas Trades Lower

Natural Gas Trades Lower Near $2.13 On Recession Fears

Natural Gas (XNG/USD) has moved lower and got out of its trading range ($2.13 - $2.36). The reason for the lower prices of natural gas is that the markets are once again worried that the US economy will enter into recession.

The demand for Natural Gas (XNG/USD) also looks bleak in the Chinese and European markets. Available data shows that China and Europe need less amount of LNG (Liquified Natural Gas).

New Zealand Takes Measures To Solve Energy Crisis

Similarly, New Zealand has made changes to its regulations, which will make it easy to improve the LNG in the country. Additionally, the country has also decided to remove the ban imposed on offshore exploration projects.

The initiatives taken by New Zealand will help the country to get out of the energy crisis. At the same time, it will provide some support to the energy prices. But, this demand wouldn't be enough to offset the decline seen in the European and Chinese markets.

Meanwhile, DXY is now trying to stage a recovery to correct some of its losses. The last few weeks weren't generous for the US Dollar as it ended them with hefty losses.

Now, it seems that the US dollar has found support for the time being, and even mild inflows have started to form their way into the currency. But everyone is nervous as the Nvidia (NVDA) results are just around the corner, and no one wants to get caught up.

Experts believe that poor results from Nvidia (NVDA) will lead to a broader sell-off in the US stock markets. This will be bad news for the US stocks and the tech stocks in particular. However, it will boost the US dollar, which will lower the natural gas (XNG/USD).

Right now, Natural Gas (XNG/USD) is trading near $2.13 with a bearish bias on weaker demand and slowdown in global economy.

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