Natural gas bounces on stalling US Dollar during Powell testimony

The US Dollar stalls giving Natural Gas a boost after a three-day rally during Fed Chair Powell’s testimony before the Congress.

Natural Gas finds support after Tuesday’s decline as higher-than-expected demand for Gas used in cooling puts a floor under prices. Concerns regarding Norwegian supply after data showed a slump in May and news of earlier-than-expected outages further supports.

Natural gas price consolidates on Wednesday after the sharp decline witnessed in previous sessions. Hotter-than-expected weather is one factor preventing deeper declines, with forecasts of temperatures in Texas reaching 100 degrees Fahrenheit this week, expected to put pressure on Gas supplies used in air conditioning, according to a report by Natural Gas World.

Gas is also supported by ambiguous US Dollar price action. The world’s reserve currency seems to have stalled during US Federal Reserve (Fed) Chairman Jerome Powell’s testimony to Congress. Natural Gas is mainly priced and traded in US Dollars so a pullback in the currency tends to result in a lift for Gas prices.

XNG/USD is trading at $2.621 MMBtu, at the time of writing, during the US session on Wednesday.