Daily Market Bulletin – 26 January 2022
Market Developments
Investors were edgy, as they brace for today's Fed policy decision and after a bad day in the US Stock markets.
Microsoft reported solid results for Q2 FY2022, with Revenue growing 20% year-over-year, to $51.7 billion, while forward guidance for the next quarter (Q3 FY2022) seemed to satisfy markets and the stock rose in extended trading.
The Intelligent Cloud segment, which includes Azure, is projected to generate Revenue of $ 18.75 to $19 billion. Total Revenues are forecasted at $48.5 billion to 49.3 billion. [1]
On Tuesday, the International Monetary Fund (IMF) downgraded its global growth forecast to 4.4% in 2022 from 4.9% in the October projections. 2022 GDP was also lowered to 4% for the United States and to 4.8% for China, compared to 4.5% and 5.6% respectively in the October projections. [2], [3].
Main Asia-Pacific stock markets were somewhat mixed, with Australia out on holiday, but European futures appear to be in better mood.
In the FX space, the US Dollar consolidates and the JPY Basked is soft, as sentiment shows signs of improvement.
Instruments Snapshot
EUR/USD is cautious, breaching 1.1300.
GBP/USD consolidates, trying to hold 1.3500.
USD/JPY trades with positive undertone, trying to reclaim 114.00.
USD/CAD retreats and probes 1.2600 ahead of Fed & BoC meetings.
AUD/USD shows indecision around 0.7150.
NZD/USD is soft below 0.6700.
GER30 is upbeat and reclaims 15,200
US30 rebounds and tests 34,300.
USOIL stays on the offensive surpassing 85.50.
XAU/USD is tepid below 1,850, following yesterday's 2022 highs (1,854).
Economic Calendar Picks (GMT)
All eyes will be on the US Federal Reserve monetary policy decision (19:00) and Mr Powell's press conference (19:30), for more clues around lift-off date and tightening path.
Earlier in the day, the Bank of Canada (Boc) hands down its monetary policy decision as well (15:00), while New Zealand Q4 CPI Inflation is due at 21:45.
UK politics are likely to be in the spotlight, as the results of an investigation in Downing Street parties during Covid-19 lockdown, could be released as early as today.
On the earnings front, Boeing and AT&T stand out before US markets open, while Tesla and Intel, report after the close.
See the economic calendar here.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 26 Jan 2022 https://view.officeapps.live.com/op/view.aspx | |
| Retrieved 26 Jan 2022 https://www.imf.org/en/Publications/WEO/Issues/2022/01/25/world-economic-outlook-update-january-2022 | |
| Retrieved 11 Apr 2026 https://www.imf.org/en/Publications/WEO/Issues/2021/10/12/world-economic-outlook-october-2021 |
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