Daily Market Bulletin – 19 January 2022

Market Developments

The US bond market and oil disruptions remain in the spotlight, keeping investors on their toes.

US Treasury yields hit fresh highs, while oil flow in Iraq-Turkey pipeline was cut, due to an explosion. [1]

Data just released, showed that CPI Inflation surged 5.4% y/y in the UK in December, compared to 5.1% in the prior month.

WHO's latest weekly epidemiological update showed over 18 million new cases reported last week (10-16 January) - a 20% increase, as compared to the prior week. [2]

Its Director General, Dr Tedros, said that "this pandemic is nowhere near over and with the incredible growth of Omicron globally, new variants are likely to emerge", during Tuesday's briefing. [3]

Microsoft announced yesterday that it will buy gaming publisher and developer Activision Blizzard, for a massive $68.7 billion, [4] potentially posing a big challenge to rival Sony.

Main Asia-Pacific stock markets tracked Wall Street lower and European futures are also in poor mood.

The US Dollar is soft, the JPY Basket rises and Antipodeans (AUD, NZD) rebound against the greenback.

Instruments Snapshot

EUR/USD finds support above 1.1300, pausing its three-day decline.

GBP/USD attracts buyers after its poor weekly start and reclaims 1.3600.

USD/JPY is on the back foot and concedes 114.50.

USD/CAD continues to lack direction, trying to defend 1.2500.

AUD/USD finds support after three losing days, bur stays below 0.7200.

NZD/USD moves to the offensive towards 0.6800.

GER30 stays on the defensive, trading below 15,700.

US30 extends its slump into the fifth straight day, giving 35,200 up.

USOIL is soft and tests 86.00, but managed to clinch fresh multi-year highs earlier (87.09).

XAU/USD trades with positive undertone, trying to retake 1,815.

Economic Calendar Picks (GMT)

Following UK's data, markets now await Inflation update from Canada (13:30).

Bank of England officials, including Governor Bailey, appear before the UK's Parliament Treasury Select Committee (14:15).

Overnight, focus will shift to Australia's Employment report (00:30).

On the Earnings front, Bank of America (BAC.us) and Procter&Gamble (PG.us) report before the bell, followed by United Airlines (UAL.us) 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 19 Jan 2022 https://www.reuters.com/world/middle-east/turkeys-botas-halts-flow-after-explosion-kirkuk-ceyhan-oil-pipeline-statement-2022-01-18/

2

Retrieved 19 Jan 2022 https://www.who.int/publications/m/item/weekly-epidemiological-update-on-covid-19---18-january-2022

3

Retrieved 19 Jan 2022 https://www.who.int/director-general/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19-18-january-2022

4

Retrieved 26 May 2022 https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/

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