Daily Market Bulletin – 15 February 2022

Market Developments

Markets remain edgy as thee continue to monitor news around Ukraine and comments from Fed officials.

US secretary of State Anthony Blinken announced on Monday that the US is relocating its Embassy in Ukraine "due to the dramatic acceleration in the buildup of Russian forces", heightening fears of imminent war. [1]

Speaking in CNN's State of the Union on Sunday, US national security adviser Jake Sullivan had said that "a major military action could begin by Russia in Ukraine any day now" [2]

On the Fed front, Mr Bullard (hawk) commented that "I do think we need to front-load more of our planned removal of accommodation than we would have previously. We've been surprised to the upside on inflation. This is a lot of inflation", speaking on CNBC's Squawk Box yesterday. [3]

The Reserve Bank of Australia released the minutes of it last policy meeting, when it had announced the end of its asset purchases. The minutes did not offer much new as officials noted that "inflation had picked up more quickly than the Bank had expected", but that "it was too early to conclude that it was sustainably within the target band". The Board also reiterated it "will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target band". [4]

Trade the News: View our Economic Calendar

Main Asia-Pacific stocks were mostly down and European futures are cautious. On the FX front, the Japanese Yen continues to attract flows, whereas the US Dollar is mixed.

Instruments Snapshot

EUR/USD defended 1.1300 on Monday and today it stages a rebound.

GBP/USD finds support and tries to retake 1.3550.

USD/JPY retreats towards 115.00, after its solid start to the week.

USD/CAD shows indecision above 1.2700.

AUD/USD is soft, but defends 0.7100.

NZD/USD attracts buyers above 0.6600.

GER30 is cautious, trying to hold above 15,000.

US30 is tepid, breaching 34,500.

USOIL consolidates below yesterday's 7+ year highs (95.83).

XAU/USD extends gains above 1,875, to the highest levels since June 2021.

Economic Calendar Picks (GMT)

A busier day today in terms of releases, with ZEW Economic Sentiment form Germany and Eurozone and the bloc's Q4 GDP and Employment figures, being the first in line (10:00).

Markets will then turn to US Producer Price Index (13:30), while the US Senate Banking Committee is expected to vote today on the renomination of Mr Powell, as well as Ms Brainard as Vice Chair and on the three Biden picks for the Board of Governors.

Overnight, focus will shift to China's Consumer and Producer Inflation figures (01:30).

On the earnings front, Airbnb stands out today, reporting after US markets close.

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 15 Feb 2022 https://www.state.gov/operations-at-u-s-embassy-kyiv/

2

Retrieved 15 Feb 2022 https://edition.cnn.com/2022/02/13/politics/jake-sullivan-cnntv/index.html

3

Retrieved 15 Feb 2022 https://www.youtube.com/watch

4

Retrieved 20 May 2022 https://www.rba.gov.au/monetary-policy/rba-board-minutes/2022/2022-02-01.html

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses exceeding deposited funds, if you are a professional client. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}