Daily Market Bulletin – 23 February 2022
Market Developments
Markets appear cautious as they digest the West's sanctions after Monday's recognition of two separatist region in Ukraine by Russia, with President Putin defending the decision and the authorization of military deployment. [1]
German Chancellor Olaf Scholz halted Nord Stream 2 yesterday, the gas pipeline that would deliver gas from Russia to Germany [2], while USA, UK and the European Union announced sanctions against Russia and US Secretary of State Blinken, called off Thursday's meeting with his Russian counterpart [3].
The Reserve Bank of New Zealand (RBNZ) increased rates to 1%, delivering its third hike in a row. It also agreed to unwind its balance sheet at a rate of NZ$5 billion/fiscal year, beginning in July, with the NZD reacting higher.[4]
Australian retailer Woolworths Group Revenues rose 8% y/y, to A$31.89 billion during H2 FY22, although Net Profits (NPAT) dropped 6.5% y/y, to A$795 million. WOW.au rose after the results, closing today with gains in excess of 1%.
Main Asia-Pacific stock markets were up, with Japan out on holiday, while European futures aslo show some upside.
Safe-havens Japanese Yen and US Dollar consolidate, whereas main Commodity Currencies (CAD, AUD, NZD) rise against the greenback.
Instruments Snapshot
EUR/USD shows indecision above 1.1300, following yesterday's rise.
GBP/USD consolidates capped by 1.3600.
USD/JPY is subdued, trying to hold 115.00.
USD/CAD ends its four-day advance, testing 1.2750 on the downside.
AUD/USD stays on the front foot, looking towards 0.7250.
NZD/USD gains around 0.5% and surpasses 0.6750, after RBNZ's rate hike.
GER30 trades with positive undertone, trying to surpass 14,700.
US30 is in similar mood, trading around 33,700.
USOIL finds some support around 92.00, after Tuesday's drop.
XAU/USD is on the back foot, probing 1,895.
Economic Calendar Picks (GMT)
Eurozone's final CPI Inflation for January (10:00) stands out form today's docket, while Bank of England governor Bailey and other members appear today in front of the Parliament's Treasury Committee.
On the earnings front, Australian airliner Qantas, releases its half year financial results on Thursday.
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 23 Feb 2022 http://en.kremlin.ru/events/president/news/67838 | |
| Retrieved 23 Feb 2022 https://www.deutschland.de/en/news/scholz-halts-nord-stream-2 | |
| Retrieved 23 Feb 2022 https://twitter.com/StateDept/status/1496341547494920199 | |
| Retrieved 23 Feb 2022 https://www.rbnz.govt.nz/news/2022/02/more-tightening-needed |
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