Daily Market Bulletin – 29 March 2022

Market Developments

Investors appear edgy as they monitor the Russia-Ukraine situation, Bank of Japan bond buying activity and a reversal in 5-year/30-year bond yields.

Russian and Ukraine delegations are expected to meet face-to-face today in Turkey, which creates some hopes for a diplomatic solution to the conflict.

Kremlin spokesman Dmitry Peskov said that "No one is thinking about using, about — even about idea of using a nuclear weapon" in a PBS interview [1]. Last week he had repeatedly refused to rule this out, in an interview with Christiane Amanpour [2].

US President Biden also seemed to take a step back from recent heated rhetoric, clarifying that his weekend remarks that Russian President Putin can't remain in power, were a "moral outrage" and do not constitute policy change. [3].

The Bank of Japan (BoJ) announced yesterday that it will buy unlimited amount of 10-Year Government Bonds (JGBs) over three days at 0.25%, in order to contain rising yields[4]. According to Reuters, Minister of Finance Suzuki said that Japan will carefully watch foreign exchange market moves to avoid "bad yen weakening"[5].

The US 5-year and 30-year bond yields inverted yesterday, creating some fear of a potential recession in the US. Shorter term yields above longer term ones are often considered a precursor to a recession, but economists typically focus on the 2-year/10-year spread.

TSLA.us surged nearly 8% on Monday after an SEC filing revealed that Tesla plans to request stockholder approval at the upcoming 2022 Annual Meeting for a new stock split [6]. The firm's last stock split (5-1) had taken place in August 2020.

Chinese EV maker Xpeng announced yesterday a Q4 Revenue rise of 49.6% quarter-over quarter, while its Net Loss narrowed to RMB 1.287,2 billion [7]. XPEV.us posted small gains after the results. Rival Nio initiated the delivery of its ET7 premium flagship sedan yesterday [8], with NIO.us gaining more than 6% on Monday.

Main Asia-Pacific stock markets traded higher and European futures seem to be a bit cautious. On the FX space, the JPY Basket rises, whereas the US Dollar is soft.

Instruments Snapshot

EUR/USD is cautious and capped by 1.1000.

GBP/USD steadies around 1.3100, following Monday's roughly 100-pips slump.

USD/JPY retreats and test 123.50, helped by supportive commentary, after yesterday's nearly 7-years high (125.11).

USD/CAD trades with caution above 1.2500, after having halted its 9-days losing streak yesterday.

AUD/USD shows indecision, contained by 0.7500.

NZD/USD finds support and reclaims 0.6900, after its poor start to the week.

GER30 trades with positive undertone above 14,600.

US30 tries to stay upbeat, trading around 35,000.

USOIL is supported above 104.50, following Monday's plunge.

XAU/USD consolidates above 1,920.

Economic Calendar Picks (GMT)

Today's docket is still a bit light, with US JOLTS Jobs Openings and Consumer Confidence (14:00) standing out.

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

2

Retrieved 29 Mar 2022 https://www.youtube.com/watch

3

Retrieved 29 Mar 2022 https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/03/28/remarks-by-president-biden-announcing-the-fiscal-year-2023-budget/

4

Retrieved 29 Mar 2022 https://www.boj.or.jp/en/announcements/release_2022/rel220328d.pdf

5

Retrieved 29 Mar 2022 https://www.reuters.com/world/asia-pacific/japan-policymakers-warn-against-rapid-yen-weakening-2022-03-29/

6

Retrieved 29 Mar 2022 https://www.sec.gov/Archives/edgar/data/1318605/000156459022011875/tsla-8k_20220328.htm

7

Retrieved 29 Mar 2022 https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-reports-unaudited-fourth-quarter-and-full-2

8

Retrieved 01 Jul 2022 https://twitter.com/NIOGlobal/status/1508455282388602880

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}