Daily Market Bulletin – 2 February 2022

Market Developments

Overall sentiment seemed a bit cautious amidst tightening expectations and Covid-19 warning by WHO's Dr Tedros that "We are now starting to see a very worrying increase in deaths, in most regions of the world. It's premature for any country either to surrender, or to declare victory." [1]

Philadelphia Fed President Patrick Harker (voter) thinks that four 25 basis point increases this year is appropriate and did not rule out a 50 bps rise, speaking on BloombergTV yesterday. [2]

Reserve Bank of Australia Governor Lowe reiterated today, that yesterday's decision to cease the asset purchase program "does not mean that an increase in the cash rate is imminent." [3]

Alphabet (Google) Revenues rose 32% year-over-year in Q4 2021, to a record of $75.325 billion. Google Cloud generated $ 5.541 billion, from $3.831 billion a year ago. [4]

The firm also announced a 20-1 Stock Split, to take effect in July, pending shareholder approval. The stock jumped in extended trading, after the report.

Semiconductor maker AMD, announced Revenues of $4.826 billion in the fourth quarter of 2021, marking a 49% year-over-year surge. It also offered strong forward guidance, expecting Revenue to be approximately $5.0 billion, plus or minus $100 million, in Q1 2022.[5]

Trade the News: View our Economic Calendar

AMD said that its $35 billion acquisition of Xilinx, is expected to close in Q1 2022. AMD's stock rose in extended trading, following the results.

In the main Asia-Pacific stock markets there was a positive tone, with mainland China and Honk Kong still out on holiday, while European futures appear to be mostly cautious.

In the FX space, the US Dollar steadies after its two-day decline and the JPY Basket is mixed.

Instruments Snapshot

EUR/USD consolidates above 1.1250, following its solid weekly start.

GBP/USD stays on the front foot, looking towards 1.3550.

USD/JPY faces difficulties, trying again to hold 114.50.

USD/CAD is soft below 1.2700.

AUD/USD trades with positive undertone below 0.7150.

NZD/USD lacks direction below 0.6650, after its two-day advance.

GER30 is mixed above 15,600, giving up earlier gains.

US30 is upbeat, testing 35,400.

USOIL steadies, just shy off Tuesday's fresh multi-year highs (88.88).

XAU/USD is on the defensive, breaking below 1,800.

Economic Calendar Picks (GMT)

Eurozone CPI Inflation (10:00) is in the spotlight today, while we also expect a speech from Bank of Canada governor Tiff Macklem (20:00).

The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, are expected to decide today on their output plan and weather to add another 400,000 barrel/day next month.

On the earnings front, Meta (Facebook) and Spotify stand out, 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 02 Feb 2022 https://twitter.com/DrTedros/status/1488582480076623873

2

Retrieved 02 Feb 2022 https://twitter.com/BloombergTV/status/1488598593418182656

3

Retrieved 02 Feb 2022 https://www.rba.gov.au/speeches/2022/sp-gov-2022-02-02.html

4

Retrieved 02 Feb 2022 https://abc.xyz/investor/static/pdf/2021Q4_alphabet_earnings_release.pdf

5

Retrieved 03 Jul 2022 https://d1io3yog0oux5.cloudfront.net/_8673b1e876d56c181768b458de9812a9/amd/news/2022-02-01_AMD_Reports_Fourth_Quarter_and_Full_Year_2021_1044.pdf

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