Daily Market Bulletin – 31 December 2021
Market Developments
Investos sentiment seemed to be at a good place as we enter the final day of the year, helped by accelerated factory activity in China.
As per the country's National Bureau of Statistics, Manufacturing PMI came in at 50.3 in December, compared to 50.1 expected and prior. The Services PMI came in at 52.7 vs expected 53.1, prior 52.3.
US President Biden and Russian President Putin held their second call this month, with senior US officials calling its tone "serious and substantive" .
Ukraine was once again a key topic with US Press Secretary Jen Psaki commenting saying that Mr Biden "made clear that the United States and its allies and partners will respond decisively if Russia further invades Ukraine" .
The two countries have agreed to hold of a series of talks next month.
Main Asia-Pacific stock markets were mixed, with Japan out, while European futures appear cautious.
The US Dollar steadies and the JPY Basket remains soft, with the Australian Dollar making progress against both.
Instruments Snapshot
EUR/USD is soft but holds above 1.1300.
GBP/USD consolidates around 1.3500, following its 2-day advance.
USD/JPY remains upbeat above 115.00.
USD/CAD extends this week's decline and gives 1.2750 up.
AUD/USD is constructive above 0.7250.
NZD/USD shows indecision below 0.6850.
US30 is on the back foot, trying to defend 36,400.
USOIL trades in profitable territory above 76.50.
XAU/USD is on the offensive, trying to take 1,820 out.
Economic Calendar Picks (GMT)
Other than US Baker Hughes Oil Rig Count (18:00), not much is expected in terms of economic releases, while most European stock markets will not open today or will close early.
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.
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.