Daily Market Bulletin – 20 January 2022

Market Developments

Investors were upbeat, helped by China's central bank activity, Australia's solid Employment report and US treasury yields backing off recent highs.

The People's Bank of China (PBOC) announced the reduction of the one-year Loan Prime Rate (LPR) by 10 basis points to 3.70%, while the above-five-year LPR was lowered by 5-basis points to 4.6%. [1]

The jobs report in Australia showed an impressive drop to 4.2% in the Unemployment Rate in December, compared to November's 4.6%. The Australian economy also added 64.8K jobs last month, which was far less than November's blowout 366.1K addition, but easily beat estimates.

Germany Producer Price Index was just released, showing a surge of 24.2% year-over-year in December, compared to 19.2% prior.

United Airlines (UAL.us) reported a Net Loss of $646 million for Q4 2021, compared to Profit of $641 in Q4 2019, but the figure was much better than last year's Q4 (Loss of $1.897 billion). [2]

For the first quarter of the current year, United projects Revenue to be down 20%-25% versus first quarter 2019, but remains on track to achieve long-term financial targets from United Next plan. The company will hold the relevant earnings call today.

On Wednesday, UK PM Johnson announced a relaxing in Covid-19 restrictions, as the government will allow Plan B measures to expire next week. [3]

Main Asia-Pacific stock traded mostly higher and European futures are also upbeat.

The US Dollar is tepid, the JPY Basket drops and the Australian Dollar rises against both, helped by the solid employment figures.

Instruments Snapshot

EUR/USD trades with positive undertone around 1.1350, but gives up some of the gains from its strong start to the day.

GBP/USD stays on the offensive above 1.3600.

USD/JPY attracts buyers and tries to retake 114.50.

USD/CAD retreats below 1.2500.

AUD/USD is boosted by solid AU jobs report, but rejects 0.7350.

NZD/USD is having a bad day, but defends 0.6750.

GER30 is upbeat and returns above 15,800.

US30 halts its five-day slump and reclaims 35,200.

USOIL is mixed around 85.50.

XAU/USD shows indecision around 1,840, following Wednesday's rally.

Economic Calendar Picks (GMT)

Eurozone is in the spotlight today, with the CPI Inflation figures (10:00) and ECB's monetary policy meeting accounts (12:30), while from the US we expect the weekly Jobless Claims (13:30).

Overnight, focus will shift to Inflation data from Japan (23:50).

Today's earnings calendar is dominated by Netflix, which reports its Q4 results after markets close.

See the economic calendar here.

FXCM Research Team

FXCM Research Team consists of a number of FXCM's Market and Product Specialists.

Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.

References

1

Retrieved 20 Jan 2022 http://www.pbc.gov.cn/en/3688229/3688335/3883798/4453506/index.html

2

Retrieved 20 Jan 2022 https://www.united.com/en/us/newsroom/announcements/cision-125204

3

Retrieved 24 May 2022 https://www.gov.uk/government/speeches/pm-statement-to-the-house-of-commons-on-covid-19-19-january-2022

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