Daily Market Bulletin – 23 March 2022

Market Developments

Investors appeared upbeat, shrugging off geopolitics, concerns over China's property market and hawkish Fed commentary.

Kremlin spokesperson Dimitry Peskov refused to rule out the use of nuclear weapons when asked in an interview with Christiane Amanpour. He noted that, "if it is an existential threat for our country, then it can be used". [1]

UN's Secretary-General Guterres seemed optimistic around the Russia-Ukraine negotiations, saying that "elements of diplomatic progress are coming into view on several key issues" [2], while US National Security Advisor Jake Sullivan said yesterday that the US intends to impose further sanctions against Russia, with the announcement expected in Thursday [3].

Fresh concerns about China's property market emerged, after Kaisa Group said that it will miss the March 31 deadline for publishing its 2021 financial results, citing recent Covid-19 lockdown in Shenzhen [4]. Embattled developer Evergande had made similar announcement yesterday [5].

St Louis Fed President and prominent hawk James Bullard said that the bank needs to "move aggressively to keep inflation under control", speaking on Bloomberg yesterday [6]. On Monday, Chairman Powell had showed readiness for larger 50 basis point rate increases, if needed.

On Tuesday, Tesla delivered its first Model Ys form the new factory in Berlin. TSLA.us gained nearly 8% yesterday, posting its sixth straight profitable day.
Main Asia-Pacific stock markets followed Wall Street higher and European futures are also upbeat.

UK's latest Consumer Price Index (PCI) data were just released, showing that Inflation climbed 6.2% year-over-year in February, from 5.5% in the prior month.

On the FX space, the JPY Basket stays on the back foot, the US Dollar lacks direction and Antipodeans (AUD, NZD) are cautious against the greenback.

Instruments Snapshot

EUR/USD trades with positive undertone above 1.1000, following yesterday's rebound.

GBP/USD is mixed above 1.3250, as it erases earlier gains.

USD/JPY extends its six-year highs, breaking above 121.00.

USD/CAD is upbeat below 1.2600, trying to stop the six-days losing streak.

AUD/USD started the day with fresh 2022 highs, but now trades in negative territory, testing 0.7450.

NZD/USD trades in similar fashion, breaching 0.6950.

GER30 is constructive, but can't leave 14,600 behind it.

US30 tries to stay in good mood above 34,800, after Tuesday's advance.

USOIL is upbeat, trading above 109.50.

XAU/USD remains under pressure, defending 1,915.

Economic Calendar Picks (GMT)

We don't expect any major economic releases for the rest of the day, but central bank officials will remain in the spotlight.

Most notably, Fed Chair Powell, Bank of England Governor Bailey and Deutsche Bundesbank President Nagel are scheduled to speak today at the BIS Innovation Summit 2022.

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

2

Retrieved 23 Mar 2022 https://www.un.org/sg/en/content/sg/press-encounter/2022-03-22/secretary-generals-remarks-press-the-war-ukraine

3

Retrieved 23 Mar 2022 https://www.whitehouse.gov/briefing-room/press-briefings/2022/03/22/press-briefing-by-deputy-press-secretary-chris-meagher-and-national-security-advisor-jake-sullivan-march-22-2022/

4

Retrieved 23 Mar 2022 https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0323/2022032300009.pdf

5

Retrieved 23 Mar 2022 https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0322/2022032200295.pdf

6

Retrieved 23 Mar 2022 https://www.stlouisfed.org/from-the-president/video-appearances/2022/bullard-speaks-with-bloomberg-about-raising-rates-balance-sheet-runoff

Disclosure

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.

Past Performance: Past Performance is not an indicator of future results.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}