Daily Market Bulletin – 24 February 2022

Market Developments

Risk-off wave hits markets and sends investors to safe-havens, after Russian President Putin announced a special military operation in Ukraine, saying that his plans "don't include occupation of Ukrainian territory, we are not going to impose anything on anyone by force" - as per Politico's reporting of the address. [1]

Ukranian Foreign Minister Mr Kuleba however, twitted that "Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes". [2]

US President Biden condemned the attack as "unprovoked and unjustified" and pointed to further sanctions against Russia [3], while UK PM Johnson vowed to "respond decisively" and that "President Putin has chosen a path of bloodshed and destruction by launching this unprovoked attack on Ukraine" [4].

EU Commission President Ms von Der Leyen twitted that "We will hold the Kremlin accountable" [5], while UN Secretary General urged Mr Putin to "in the name of humanity, bring your troops back to Russia" [6].

Trade the News: View our Economic Calendar

Australian airliner Qantas posted Underlying EBITDA Loss A$245 million in H1 FY22, marginally less than its A$250-A$300 million projection. The Group noted that "flying operations were severely impacted by widespread domestic lockdowns and continued international restrictions". QAN.au reacted lower and closed the day with losses of nearly 5%. [7]

Yesterday, Eurozone's CPI Inflation ticked up 5.1% year-over-year in January, from +5% in the previous month. Core CPI rose +2.3% year-over-year, from 2.6% prior.

Main Asia-Pacific stock markets plunged, US 10YR Yields drop and Oil prices surge due to the intense risk-aversion.

Safe-havens Japanese Yen and US Dollar attract flows, whereas risk-averse Antipodeans (AUD, NZD) decline against both.

Instruments Snapshot

EUR/USD sheds around 0.5%, breaching 1.1250.

GBP/USD is on the back foot and probes 1.3500.

USD/JPY drops and tests 114.50, as risk aversion benefits the Yen more.

USD/CAD advances towards 1.2800 after yesterday's retreat.

AUD/USD breaks below 0.7200, as investors seek the safety of the US Dollar.

NZD/USD sheds more than 0.5% for the same reasons, but defends 0.6700.

GER30 plunges to almost one-year lows and tests 14,000.

US30 is in similar move, trading below 33,500.

USOIL rallies past 96.50, the highest level since August 2014.

XAU/USD rises to 13-month highs above 1,940.

Economic Calendar Picks (GMT)

Market participants will continue to monitor the situation in Ukraine, while US Q4 GDP and Jobless Claims are due at 13:30. New Zealand Releases its Q4 Retail Sales at 21:45.

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 24 Feb 2022 https://www.politico.eu/article/putin-announces-special-military-operation-in-ukraine/

2

Retrieved 24 Feb 2022 https://twitter.com/DmytroKuleba/status/1496695889401896964

3

Retrieved 24 Feb 2022 https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/23/statement-by-president-biden-on-russias-unprovoked-and-unjustified-attack-on-ukraine/

4

Retrieved 24 Feb 2022 https://twitter.com/BorisJohnson/status/1496709938973917186

5

Retrieved 24 Feb 2022 https://twitter.com/vonderleyen/status/1496710321372901380

6

Retrieved 24 Feb 2022 https://twitter.com/antonioguterres/status/1496704208254509059

7

Retrieved 01 Jul 2022 https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/2022HY/1H22-Media-Release.pdf

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