Daily Market Bulletin – 15 February 2022
Market Developments
Markets remain edgy as thee continue to monitor news around Ukraine and comments from Fed officials.
US secretary of State Anthony Blinken announced on Monday that the US is relocating its Embassy in Ukraine "due to the dramatic acceleration in the buildup of Russian forces", heightening fears of imminent war. [1]
Speaking in CNN's State of the Union on Sunday, US national security adviser Jake Sullivan had said that "a major military action could begin by Russia in Ukraine any day now" [2]
On the Fed front, Mr Bullard (hawk) commented that "I do think we need to front-load more of our planned removal of accommodation than we would have previously. We've been surprised to the upside on inflation. This is a lot of inflation", speaking on CNBC's Squawk Box yesterday. [3]
The Reserve Bank of Australia released the minutes of it last policy meeting, when it had announced the end of its asset purchases. The minutes did not offer much new as officials noted that "inflation had picked up more quickly than the Bank had expected", but that "it was too early to conclude that it was sustainably within the target band". The Board also reiterated it "will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target band". [4]
Main Asia-Pacific stocks were mostly down and European futures are cautious. On the FX front, the Japanese Yen continues to attract flows, whereas the US Dollar is mixed.
Instruments Snapshot
EUR/USD defended 1.1300 on Monday and today it stages a rebound.
GBP/USD finds support and tries to retake 1.3550.
USD/JPY retreats towards 115.00, after its solid start to the week.
USD/CAD shows indecision above 1.2700.
AUD/USD is soft, but defends 0.7100.
NZD/USD attracts buyers above 0.6600.
GER30 is cautious, trying to hold above 15,000.
US30 is tepid, breaching 34,500.
USOIL consolidates below yesterday's 7+ year highs (95.83).
XAU/USD extends gains above 1,875, to the highest levels since June 2021.
Economic Calendar Picks (GMT)
A busier day today in terms of releases, with ZEW Economic Sentiment form Germany and Eurozone and the bloc's Q4 GDP and Employment figures, being the first in line (10:00).
Markets will then turn to US Producer Price Index (13:30), while the US Senate Banking Committee is expected to vote today on the renomination of Mr Powell, as well as Ms Brainard as Vice Chair and on the three Biden picks for the Board of Governors.
Overnight, focus will shift to China's Consumer and Producer Inflation figures (01:30).
On the earnings front, Airbnb stands out today, reporting 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
| Retrieved 15 Feb 2022 https://www.state.gov/operations-at-u-s-embassy-kyiv/ | |
| Retrieved 15 Feb 2022 https://edition.cnn.com/2022/02/13/politics/jake-sullivan-cnntv/index.html | |
| Retrieved 15 Feb 2022 https://www.youtube.com/watch | |
| Retrieved 20 May 2023 https://www.rba.gov.au/monetary-policy/rba-board-minutes/2022/2022-02-01.html |
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