Daily Market Bulletin – 12 April 2022
Market Developments
Investors appeared edgy as they continue to monitor the Covid-19 situation in China and brace for another Inflation update from the United States.
The Chinese mainland reported 1,251 new locally transmitted COVID-19 cases for April 11 and there were also 23,387 new asymptomatic carriers (local and imported). Shanghai had 994 carriers with symptoms (from 914 in the previous day) and 22,348 asymptomatic (from 25,173 in the previous day). [1]
Reuters reported that Shanghai eased some lockdown measures, classifying certain areas as lower-risk [2]. The US State Department issued a travel advisory on Monday, for its citizen's to reconsider travel to China due to "arbitrary enforcement of local laws and COVID-19-related restrictions" and also ordered the departure of non-emergency government employees and all family members from Shanghai. [3]
Ahead of today's Consumer Price Index (CPI) data, White House Press Secretary Jen Psaki warned yesterday of "extraordinarily elevated" Headline CPI for March, due what she called "Putin's price hike". [4]
Data just released, showed that Germany Headline Consumer Price Index steadied at 7.3% year-over-year in March, while UK's Average Weekly Wages (including bonuses) grew 5.4% annually for the December 2021-February 2022 period, from 4.8% prior.
On the Ukraine front, UK Foreign Secretary Ms Truss twitted that they are looking into reports that Russian troops may have used "chemical agents in an attack on the people of Mariupol". [5]
Canada-based e-commerce firm Shopify announced yesterday a 10-for-1 stock split, to be implemented in late June, if it gets shareholder approval. SHOP.us gained more than 2% on Monday. [6]
Main Asia-Pacific stock markets were mixed, while European futures are cautious. On the FX space, the US Dollar lacks firm direction, the JPY Basket is soft and Antipodeans (AUD, NZD) try to stop their four-day slide against the greenback.
Instruments Snapshot
EUR/USD is on the defensive above April's low (1.0835).
GBP/USD faces pressure, trying to hold 1.3000.
USD/JPY stays on the front foot, trying for new nearly seven year highs (125.77).
USD/CAD extends yesterday's gains and probes 1.2650.
AUD/USD defended 0.7400 earlier and trades in profitable territory, after four losing days.
NZD/USD also finds support and tries to pause the four-day losing streak, trading above 0.6800.
GER30 drops to fresh April lows, testing 14,000.
US30 stays on the back foot, breaching 34,200.
USOIL is upbeat, trying to surpass 97.00.
XAU/USD remains constructive, probing 1,960.
Economic Calendar Picks (GMT)
US March CPI Inflation dominates today's economic calendar (12:30). In February, Headline CPI had surged to 7.9% year-over-year – the highest level in forty years.
Overnight, focus will shift to the Reserve Bank of New Zealand, which hands down its monetary policy decision at 02:00. The RBNZ is one of the most hawkish major central banks, having already delivered three consecutive rate hikes.
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
| Retrieved 12 Apr 2022 https://english.news.cn/20220412/66826c8cb43b4a9c9714627dae29f2d2/c.html | |
| Retrieved 12 Apr 2022 https://www.reuters.com/world/asia-pacific/shanghai-lets-some-residents-leave-home-cautiously-eases-covid-curbs-2022-04-12/ | |
| Retrieved 12 Apr 2022 https://travel.state.gov/content/travel/en/traveladvisories/traveladvisories/china-travel-advisory.html | |
| Retrieved 12 Apr 2022 https://www.youtube.com/watch | |
| Retrieved 12 Apr 2022 https://twitter.com/trussliz/status/1513636563405713416 | |
| Retrieved 07 Jun 2023 https://news.shopify.com/shopify-announces-proposed-updates-to-its-governance-structure-to-support-continued-long-term-growth# |
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.