Daily Market Bulletin – 4 April 2022

Market Developments

Markets appear upbeat as they continue to monitor the war in Ukraine and digest Friday Jobs Report form the US.

Ukrainian President Zelenskyy accused Russia of committing "genocide" and of the "elimination of the whole nation and the people", in a CBS Face the Nation interview. [1]

When asked about the "horrific images and reports from Bucha" on CNN's State of the Union, US Secretary of State Blinken said that this these are "a punch to the gut", adding that "Since the aggression, we've come out and said that we believe that Russian forces have committed war crimes and we've been working to document that". [2]

Russia denied the accusations, saying that "All the photos and videos published by the Kiev regime in Bucha are just another provocation". [3]

On the Covid-19 front, there were 1,366 new locally-transmitted infections in mainland China on April 3, down from 1,455 the previous day. Shanghai which is under lockdown, had 425 infections. [4]

Friday's data showed that US Unemployment dropped to 3.6% in March, adding 431K jobs. This was lower than the +750K (revised) of the previous month, but is still a solid print. After that, US 2-Year bond yield moved higher than the 10-Year one, an inversion that is often seen as a sign of upcoming economic recession.

Trade the News: View our Economic Calendar

On Saturday, Tesla announced record deliveries of 310,048 vehicles in the first quarter of the year. Production however dropped slightly to 305,407 units, from 305,840 in the prior quarter. [5]

Main Asia-Pacific stock markets were upbeat, with mainland China out on holiday, while European futures are also in good mood. On the FX space, the JPY Basket and the US Dollar are soft, whereas Antipodeans (AUD, NZD) strenghten against both.

Instruments Snapshot

EUR/USD is mixed and capped by 1.1050, after last week's gains.

GBP/USD is in good mood above 1.3100.

USD/JPY stays on the front foot, trading above 122.50.

USD/CAD is soft, testing 1.2500.

AUD/USD is upbeat and stays above 0.7500.

NZD/USD is also in a good mood, but stays below 0.6950.

GER30 is on the offensive, trying to surpass 14,600.

US30 trades with positive undertone, testing 34,900.

USOIL is supported and reclaims 100.00.barrel.

XAU/USD is on the defensive, but defends 1,915.

Economic Calendar Picks (GMT)

There are no major economic releases scheduled for today, but markets will be awaiting a series of speakers form the Bank of England, including governor Bailey.

Overnight, focus will shift to the Reserve Bank of Australia (RBA), which hands down its monetary policy decision (04:30).

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 04 Apr 2022 https://www.cbsnews.com/news/volodymyr-zelenskyy-ukraine-president-face-the-nation-transcript-04-03-2022/

2

Retrieved 04 Apr 2022 https://www.state.gov/secretary-antony-j-blinken-with-dana-bash-of-cnns-state-of-the-union-2/

3

Retrieved 04 Apr 2022 https://twitter.com/mfa_russia/status/1510648066403143683

4

Retrieved 04 Apr 2022 http://english.www.gov.cn/statecouncil/ministries/202204/04/content_WS624a6181c6d02e5335328bed.html

5

Retrieved 03 Jul 2022 https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-first-quarter

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