Daily Market Bulletin – 30 March 2022

Market Developments

Tuesday's negotiations between Russia and Ukraine created hopes of a peaceful solution and risk-on mood in markets, although optimism seems to wane today as investors process the outcome.

The peace negotiation appeared constructive and one of the main takeaways was Russia's pledge to "drastically reduce military activity" near Ukrainian Capital Kiyv. [1]

Ukrainian Presidnt Zelenskyy talked of "positive" signals, but noted that Ukrainians "are not naive people" [2]. US Pentagon spokesperson Kirby confirmed that "some movement by some Russian units away from Kyiv, but believes this is a "repositioning, not a real withdrawal", adding that "we all should be prepared to watch for a major offensive against other areas of Ukraine".

The Bank of Japan (BoJ) increased the amounts of outright purchases of governments bonds (JGBs), strengthening its efforts to control yields. [4]

On the COvid-19 front, cases remain elevated in mainland China, as authorities announced 1,565 locally transmitted cases for March 29, up from 1,228 in the prior day. [5]

Main Asia-Pacific stock markets traded mostly higher, taking their cues from Wall Street, but European futures are tepid. On the FX space, the JPY Basket rises, the US Dollar slides and Antipodeans (AUD, NZD) advance against the greenback.

Instruments Snapshot

EUR/USD stays on the front foot above 1.1100, after yesterday's 100-pip rally.

GBP/USD is upbeat above 1.3100, following Tuesday's two-way action.

USD/JPY drops for second straight day, but defends 121.50.

USD/CAD remains soft, trading below 1.2500.

AUD/USD extends yesterday's advance, eyeing Monday's 2022 high (0.7541).

NZD/USD gains around 0.5%. also looking towards this year's high (0.6989).

GER30 pauses its four-day profitable streak, breaching 14,800.

US30 consolidates above 35,200.

USOIL trades with positive undertone above 105.50.

XAU/USD finds support and tries to retake 1,925.

Economic Calendar Picks (GMT)

Market participants await US Q4 GDP (12:30), as well as Eurozone's Confidence & Sentiment indicators (09:00). Overnight, focus will shift to China's PMIs (01:00).

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

2

Retrieved 30 Mar 2022 https://www.president.gov.ua/en/news/signali-z-peregovoriv-mozhna-nazvati-pozitivnimi-ale-voni-ne-73937

4

Retrieved 30 Mar 2022 https://www.boj.or.jp/en/announcements/release_2022/rel220330a.pdf

5

Retrieved 01 Jul 2022 http://english.www.gov.cn/statecouncil/ministries/202203/30/content_WS6243be50c6d02e5335328757.html

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