Natural Gas Price News: XNG/USD prods three-day recovery at monthly peak near $2.50 on US Dollar rebound

Natural Gas (XNG/USD) price takes a U-turn from the highest levels in one month to print mild losses of around $2.51 during early Wednesday morning in Europe. In doing so, the energy instrument snaps a three-day winning streak amid sour sentiment and the latest rebound in the US Dollar.

Headlines surrounding the US House China Committee’s discussion about the Taiwan invasion scenario and a likely drag on the US debt ceiling decision seem to roil the risk profile of late. On the same line could be the recently downbeat US data and hawkish Fed bets. It should be observed that a mixed earnings season also prods the sentiment and the Natural Gas price.

Furthermore, Bloomberg released news suggesting China’s role in the Russia-Ukraine war, which in turn joins US President Joe Biden’s resistance in negotiating debt limit to also weigh on the sentiment.

Elsewhere, news that the UK has enough gas supplies to survive through the winter and concerns of likely warmer weather in the West seems to have joined the forces with the US Dollar rebound to weigh on the XNG/USD price of late. On the same line could be the news from the Financial Times (FT) saying, "The EU is storing record levels of natural gas after a milder than anticipated winter, bolstering hopes that the bloc can wean itself off imports from Russia.". The news adds that the bloc’s storage totalled 55.7 per cent of capacity at the start of the month according to the industry body Gas Infrastructure Europe – the highest level for early April since at least 2011.

That said, the US Dollar Index (DXY) reverses the previous rebound from a one-year low while picking up bids to 101.80 at the latest.

The greenback’s gauge versus six major currencies tracked downbeat yields to take a U-turn the previous day. That said, the US 10-year and two-year Treasury bond coupons dropped for the first time in four days by the end of Tuesday, sluggish around 3.59% and 4.21% by the press time.

Amid these plays, S&P 500 Futures retreated from the highest levels since early February, marked the previous day, as it prints mild losses near 4,178. It’s worth noting that the US stock futures snap a two-day winning streak with the latest inaction.

Moving on, headlines surrounding China and the US Federal Reserve (Fed), as well as the Fed Beige Book, can entertain Natural Gas traders ahead of the weekly inventory data from the US Energy Information Administration (EIA), up for publishing on Thursday.

Technical analysis

Despite the latest pullback, the Natural Gas price remains firmer beyond the 50-DMA level of $2.46 for the first time since late 2022, which in turn keeps the XNG/USD bulls hopeful amid price-positive oscillators.