Daily Market Bulletin – 17 January 2022

Market Developments

Investors appeared cautious as they digested a data dump from China, with overall mixed results.

The country's GDP rose 1.6% q/q in the fourth quarter compared to 0.2% q/q prior and Industrial Production strengthened 4.3% y/y in December, from 3.8% in the prior month.

However, there was a big miss in Retail Sales, as they came in at 1.7% y/y, against 3.9% y/y prior.

The People's Bank of China (PBOC) reduced the interest rate on its Medium-Term Lending Facility (MLF) by 10 basis points (to 2.85%). [1]

Main Asia-Pacific stock markets were somewhat mixed, while European futures are subdued.

The US Dollar is supported after a poor week, whereas the JPY Basket retreats.

Instruments Snapshot

EUR/USD consolidates above 1.1400, following a poor finish to a positive week.

GBP/USD comes from similar performance, but shows indecision above 1.3650 today.

USD/JPY moves to the offensive, testing 114.50, after its worst week since September 2020.

USD/CAD is on the back foot around 1.2550.

AUD/USD faces pressure and probes 0.7200.

NZD/USD lacks firm direction around 0.6800.

GER30 trades with positive undertone above 15,900.

US30 is on the defensive above 35,900.

USOIL is inconclusive ahead of October's multiyear highs (85.42) and after four profitable weeks.

XAU/USD is upbeat and reclaim 1,820.

Economic Calendar Picks (GMT)

There is a slow start to the week with no major economic releases, while US stock markets will remain closed today in observance of Martin Luther King, Jr. Day.

Overnight, focus will turn to the Bank of Japan (BoJ), as it hands down its monetary policy decision (03:00).

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 19 May 2022 http://www.pbc.gov.cn/en/3688110/3688181/4448434/index.html

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