• Natural Gas prices were unable to break above $1.90 this week. 
• Traders are throwing in the towel on bullish outlooks after European PMI data points to a subdued economic outlook.
• The US Dollar Index sprints higher with markets not buying into Fed’s soft-landing narrative. 

Natural Gas (XNG/USD) trades roughly flat on Friday and it is set to close off the week with a small gain on the US side. However, on the other side of the Atlantic, the European Gas market is set to close this week in the red as elevated reserves and a lackluster economic outlook in Germany push demand for Gas further down. 

Meanwhile, the DXY US Dollar Index, which gauges the US Dollar (USD) against a basket of six foreign currencies, is breaking above 104.00 on Friday. The mixture of China dropping the ball on its recovery, together with markets not buying into the three Fed rate cuts for 2024 is creating a cocktail in which the Greenback is winning twice. Investors do not see a reason for three rate cuts and a soft landing by the Fed because recent US economic numbers are still showing the economy is taking off, not landing, which questions the need for any rate cuts. 

Natural Gas is trading at $1.85 per MMBtu at the time of writing.