Daily Market Bulletin – 25 February 2022

Market Developments

Investors appear calmer after yesterday's shock form the Russian attack on Ukraine, that initially sparked a risk-off wave and spurred volatility.

In his address earlier today, Ukranian President Zelenskyy said that Russia continued to launch missile strikes on the territory of Ukraine at 4 am local. He also noted that the world's most powerful forces are watching from afar. [1]

US Secretary of State Blinken made a series of TV appearances yesterday, saying that he is "convinced" that Putin is going to overthrow the Ukranian government, talking to ABC's World News Tonight". When asked about whether Russia could go beyond Ukraine, he said "it's a possibility", but reminded that the US President has been "very clear that we will defend every inch of NATO territory". [2]

US President Biden announced new sanctions against Russia yesterday, authorized additional forces to deploy to Germany and warned that Mr Putin "has much larger ambitions in Ukraine. He wants to, in fact, reestablish the former Soviet Union". [3]

Fed's Ms Mester (voter), said on Thursday, that the implications of the situation in Ukraine to the US economic outlook "will also be a consideration in determining the appropriate pace at which to remove accommodation". [4]

Mr Waller (voter), believes that the Fed should raise rates "by 1 percentage point over the next several months", but will be assessing the incoming data and noted that "a strong case can be made" for a 50 basis point increase in March, if the data "indicate that the economy is still running exceedingly hot". [5]

Plant-base meat substitute producer, Beyond Meat reported Revenue of $100.7 million in Q4 2021, marking a 1.2% drop year-over-year. Net Loss widened to $80.37 million, from a loss of $25.077 million in the same quarter a year ago. [6]

For 2022 it provided upbeat guidance, projecting Revenue in the range of $560 to $620 million, up 21% to 33% compared to 2021, but markets seemed unimpressed. The stock dropped in extended trading, after the results.

Main Asia-Pacific stock markets were mostly upbeat, following the positive turnaround in their US counterparts, while European futures are mostly cautious.

Safe-haven Japanese Yen steadies and the US Dollar retreats, following Thursday' surge, whereas main Commodity Currencies (CAD, AUD, NZD) advance against the greenback.

Instruments Snapshot

EUR/USD is mixed around 1.1200, following its worst day of the year.

GBP/USD rebounds from a similar performance and trades above 1.3400.

USD/JPY is on the back foot, but holds above 115.00.

USD/CAD retreats and gives 1.2800 up, after Thursday's 2022 highs (1.2878)

AUD/USD moves to the offensive, trying to retake 0.7200.

NZD/USD is also upbeat and returns above 0.6700.

GER30 managed to cover much of its initial plunge up to 13,787 yesterday and today it is cautious above 14,200.

US30 also covered its losses and ended Thursday flat, while today it is tepid just above 33,000.

USOIL stays on the front foot and tests 94.50, after yesterday's 7+ years highs (100.54).

XAU/USD is upbeat and tries to return above 1,920.

Economic Calendar Picks (GMT)

US Personal Consumption Expenditures for January, the Fed's preferred measure of inflation, dominate today's calendar (13:30). The Core reading had surged 4.9% year-over-year in December.

Other than that, we expect US Durable Goods Orders at the same time, while Eurozone's Sentiment/Confidence indicators are due at 10:00.

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 25 Feb 2022 https://www.president.gov.ua/en/news/zvernennya-prezidenta-na-drugij-ranok-masshtabnoyi-vijni-73153

2

Retrieved 25 Feb 2022 https://www.state.gov/secretary-antony-j-blinken-on-abc-world-news-tonight-with-david-muir/

3

Retrieved 25 Feb 2022 https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/02/24/remarks-by-president-biden-on-russias-unprovoked-and-unjustified-attack-on-ukraine/

4

Retrieved 25 Feb 2022 https://www.clevelandfed.org/newsroom-and-events/speeches/sp-20220224-an-update-on-the-us-economy-and-monetary-policy.aspx

5

Retrieved 25 Feb 2022 https://www.federalreserve.gov/newsevents/speech/waller20220224a.htm

6

Retrieved 27 Jun 2022 https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meatr-reports-fourth-quarter-and-full-year-2021-financial

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