Daily Market Bulletin – 11 April 2022

Market Developments

Investor are on edge as they digest inflation figures and Covid-19 data from China, as well as the French Presidential election results.

Incumbent Mr Macron is projected to have won the first round of the French Presidential Elections and will face Ms Le Pen on the second round on April 24.

The Chinese mainland reported 1,164 new locally transmitted COVID-19 cases for April 10 and there were also 26,411 new asymptomatic carriers (local and imported). Shanghai had 914 carriers with symptoms (from 1,006 in the previous day) and 25,173 asymptomatic (from 23,937 in the previous day). [1]

The country's Consumer Price Index rose 1.5% year-over-year in March, from 0.9% prior. Producer Price Index eased to 8.3% year-over-year, from 8.8% in February.

UK's monthly February GDP came in at +0.1%, from +0.8% prior. Manufacturing and Industrial production were both lower in February, compared to the previous readings (year-over-year).

In Sunday's interview with CBS's Face the Nation, Cleveland Fed President Ms Mester (voter) said that "it's very important that we get inflation under control" and believes that the bank can reduce excess demand "without pushing the economy into a recession". [2]

On the Ukraine front, President Zelenskyy warned that "Russian troops will move to even larger operations in the east of our state", saying that "we are preparing for their actions". [3]

Elon Musk will not be joining Twitter board after all, as per Twitter's CEO Parag Agrawal announcement today [4]. The previous agreement for seat at the board, would limit mr Musk's ownership to no more than 14.9%. [5]

Main Asia-Pacific stock were mostly down, while European futures seem to be in a better mood. On the FX space, the US Dollar stays on the front foot, the JPY Basket is mixed and Antipodeans (AUD, NZD) are soft against the greenback.

Instruments Snapshot

EUR/USD is mixed below 1.0900, as it closed the gap higher.

GBP/USD stays on the back foot, threatening Friday's 2022 low (1.2981).

USD/JPY sets fresh nearly seven year highs above 125.00.

USD/CAD is upbeat, testing 1.2600.

AUD/USD stays on the defensive, but holds above 0.7400.

NZD/USD extends losses towards 0.6800.

GER30 trades with caution around 14,200.

US30 is on the back foot, but defends 34,600.

USOIL faces pressure and probes 96.00.

XAU/USD is soft below 1,940.

Economic Calendar Picks (GMT)

Today's docket is rather bare, lacking any major economic releases, but things heat up over the next days, with US inflation figures, central banks activity and the new earnings season.

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 11 Apr 2022 http://english.www.gov.cn/statecouncil/ministries/202204/11/content_WS62539d5cc6d02e5335329098.html

2

Retrieved 11 Apr 2022 https://www.cbsnews.com/news/loretta-mester-transcript-face-the-nation-04-10-2022/

3

Retrieved 11 Apr 2022 https://www.president.gov.ua/en/news/usi-nashi-diyi-j-kozhna-hvilina-spryamovani-na-te-shob-rosiy-74241

4

Retrieved 11 Apr 2022 https://twitter.com/paraga/status/1513354622466867201

5

Retrieved 25 Jun 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/8e6028bd-1f8c-4521-b3bd-3a69e84a23d0.pdf

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