Natural Gas prices extend losses on Thursday after falling more than 3% on Wednesday.
Traders are selling Gas contracts with a stronger US Dollar killing off global economic recovery.
The US Dollar Index snaps March’s peak and rallies to test February’s highs.
Natural Gas (XNG/USD) sank below $1.80 on Thursday after prices already slid by more than 3% on Wednesday. The move came in tandem with a stronger US Dollar after US Federal Reserve official Christopher Waller pushed back against the possibility of interest-rate cuts for June. This came as a cold shower to markets, which were counting on that June rate cut for a boost in the economy and thus a boost in demand.
The DXY US Dollar Index jumped on the back of these comments to a fresh high for March. The 104.60 level, which was a line in the sand, was broken on Thursday ahead of US Gross Domestic Product’s final reading for Q4 and the Personal Consumption Expenditures Price Index (PCE) on Friday.
Natural Gas is trading at $1.77 per MMBtu at the time of writing.
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