Daily Market Bulletin – 1 April 2022

Market Developments

Investor appear cautious as they digest yesterday's inflation figures from the US, the energy spat between Russia and Western countries, while expecting new peace talks between Russia and Ukraine.

Russian President Putin announced on Thursday, that "unfriendly" countries must open Ruble accounts in Russian banks, in order to pay for gas imports, starting from April [1]. The move could disrupt the supply of energy, while Germany had triggered the Early Warning Level of its Emergency Plan for Gas on Wednesday [2].

US President Biden authorized the release of 1 million barrels/day for the next six months, from the Strategic Petroleum Reserve [3], while OPEC+ decided to increase output by 432K barrels per day (bpd) in May, marginally higher than the 400K bpd it had been adding up until now [4].

Chinese factory activity dropped to 48.1 in March (from 50.4 prior), as shown today by the Caixin Manufacturing PMI, with below-50 reading indicating contraction. On Thursday, the official NBS release had come in at 49.5.

The Fed's preferred inflation gauge, the Core Personal Consumption Expenditures, climbed 5.4% year-over-year in March – the highest level since April 1983.

Trade the News: View our Economic Calendar

Main Asia-Pacific stock markets were mostly lower following Wall Street, whereas European futures seem to be in a slightly better mood. On the FX space, the JPY Basket slides, the US Dollar is upbeat and Antipodeans (AUD, NZD) are cautious against the greenback.

Instruments Snapshot

EUR/USD remains soft and tests 1.1050, following Thursday's slide.

GBP/USD is cautious above 1.3100.

USD/JPY advances towards 112.50, after its four-day correction.

USD/CAD stays on the offensive above 1.2500.

AUD/USD is tepid below 0.7500.

NZD/USD extends yesterday's losses towards 0.6900.

GER30 trades with positive undertone around 14,400.

US30 consolidates above 34,800.

USOIL stays on the back foot, breaching 99.00.

XAU/USD shows indecision around 1,935, following two profitable days.

Economic Calendar Picks (GMT)

The US Jobs Report dominates today's calendar (12:30). The US Labor market has been recovery recently, with the report having showed the addition of 678K jobs in February.

Markets will also be looking forward to updated inflation figures form Eurozone, as the preliminary CPI reading for March is due at 09:00.

Other than that, we expect a series of PMIs from Germany (07:55), Eurozone (08:00), UK (08:30), Canada (13:30) and USA (13:45 & 14:00).

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 01 Apr 2022 https://www.youtube.com/watch

2

Retrieved 01 Apr 2022 https://www.bmwk.de/Redaktion/EN/Pressemitteilungen/2022/03/20220330-bmwk-announces-early-warning-level-of-the-emergency-plan-for-gas-security-of-supply-still-ensured.html

3

Retrieved 01 Apr 2022 https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/03/31/remarks-by-president-biden-on-actions-to-lower-gas-prices-at-the-pump-for-american-families/

4

Retrieved 01 Jul 2022 https://www.opec.org/opec_web/en/press_room/6845.htm

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