Daily Market Bulletin – 10 January 2022

Market Developments

Markets seemed to lack conviction in the absence of any key drivers today, following Friday's weak US NFPs, which showed the addition of just 199K jobs in December.

In a post today, the International Monetary Fund (IMF) warned that "Faster Fed rate increases in response could rattle financial markets and tighten financial conditions globally". [1]

Omicron remains in the spotlight, with Australian Prime Minister Morrison arguing against lockdowns in the face of rising cases. In his press conference earlier, the PM said: "You have two choices here. You can push through or you can lockdown. We're for pushing through. That's how you get through this." [2]

Over the weekend, WHOs Dr Maria Van Kerkhove had commented that "The Omicron variant has been detected around the world. We are seeing a very sharp increase in case numbers with almost 10 million cases reported in the last 7 days.". [3]

Main Asia-Pacific stock markets were mixed, with Japan out on holiday, while European futures appear subdued.

The US Dollar is supported following the NFP-fueled decline and the JPY Basket retreats, whereas the Australian Dollar outperforms both.

Instruments Snapshot

EUR/USD drops back-below 1.1300, after Friday's post-NFPs rise.

GBP/USD shows indecision just shy of 1.3600

USD/JPY trades with positive undertone above 115.50.

USD/CAD is cautious around 1.2650.

AUD/USD starts the week on the offensive, pushing for the 0.7200 handle.

NZD/USD lacks firm direction above 0.6750.

GER30 trades with positive mood, trying to retake 16,000.

US30 is mixed above 36,200.

USOIL trades with positive undertone, but can't stray away from $79/barrel.

XAU/USD is on the back foot, testing 1,790.

Economic Calendar Picks (GMT)

A subdued start to a busy week, as only Eurozone Unemployment (10:00) and Sentix Investor Confidence (09:30) stand out today.

Overnight, focus will shift to Australia's Trade Balance and Retail Sales (00:30).

See the economic calendar here.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 10 Jan 2022 https://blogs.imf.org/2022/01/10/emerging-economies-must-prepare-for-fed-policy-tightening/

2

Retrieved 10 Jan 2022 https://www.pm.gov.au/media/press-conference-canberra-act-36

3

Retrieved 26 May 2022 https://mobile.twitter.com/WHO/status/1479864196506558467

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