Daily Market Bulletin – 21 March 2022

Market Developments

Investors appeared on edge as they continue to monitor news around the situation in Ukraine and the trajectory of the pandemic in China, while the country's property sector creeps into the limelight.

The war in Ukraine has entered its 26th day, with the two sides meeting intermittently for peace talks. On Sunday, Ukrainian President Zelenskyy reiterated his readiness for negotiations with Russian President Putin, but warned that if discussions fail "that would mean that this is a third World War", during an interview with CNN's Fareed Zakaria. [1]

The Chinese authorities announced today a rise in mainland Covid-19 cases, to 1,947 (plus 80 imported) on March 20, from 1,656 on the prior day. [2].

Trading in Hong Kong shares of China's troubled property develop Evergrande was halted today, due to upcoming "announcement containing inside information", without further details. [3]

Over the weekend, there were attacks on oil and natural gas facilities in Saudi Arabia, as reported by the country's press agency (SPA). [4].

Main Asia-Pacific stock markets were mostly down, with Japan out on holiday, while their European peers follow suit.

On the FX space, the JPY Basket and the US Dollar find support, whereas Antipodeans (AUD, NZD) are soft against the greenback.

Instruments Snapshot

EUR/USD is tepid above 1.1000 after last week's advance.

GBP/USD also comes from a strong week, but starts the new one with cautions, testing 1.3150.

USD/JPY is mixed, staying close to Friday's six-year highs (119.40)

USD/CAD is soft and breaches 1.2500 once again.

AUD/USD faces pressure and tests 0.7400, pausing its four-day profitable streak.

NZD/USD is cautious, giving 0.6900 up.

GER30 trades with caution above 14,400.

US30 is on the back foot, below 34,700.

USOIL extends its gains, reclaiming 109.00.

XAU/USD shows indecision above 1,920.

Economic Calendar Picks (GMT)

After last week's eventful docket and intense central bank activity, the current one begins in a subdued manner, with markets mostly awaiting a speech by Fed Chair Powell later in the day.

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 21 Mar 2022 https://www.youtube.com/watch

2

Retrieved 21 Mar 2022 http://en.nhc.gov.cn/2022-03/20/c_85892.htm

3

Retrieved 21 Mar 2022 https://doc.irasia.com/listco/hk/evergrande/announcement/a220321.pdf

4

Retrieved 01 Jul 2022 https://www.spa.gov.sa/viewstory.php

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