Daily Market Bulletin – 31 December 2021

Market Developments

Investos sentiment seemed to be at a good place as we enter the final day of the year, helped by accelerated factory activity in China.

As per the country's National Bureau of Statistics, Manufacturing PMI came in at 50.3 in December, compared to 50.1 expected and prior. The Services PMI came in at 52.7 vs expected 53.1, prior 52.3.

US President Biden and Russian President Putin held their second call this month, with senior US officials calling its tone "serious and substantive" [1].

Ukraine was once again a key topic with US Press Secretary Jen Psaki commenting saying that Mr Biden "made clear that the United States and its allies and partners will respond decisively if Russia further invades Ukraine" [2].

The two countries have agreed to hold of a series of talks next month.

Main Asia-Pacific stock markets were mixed, with Japan out, while European futures appear cautious.

The US Dollar steadies and the JPY Basket remains soft, with the Australian Dollar making progress against both.

Instruments Snapshot

EUR/USD is soft but holds above 1.1300.

GBP/USD consolidates around 1.3500, following its 2-day advance.

USD/JPY remains upbeat above 115.00.

USD/CAD extends this week's decline and gives 1.2750 up.

AUD/USD is constructive above 0.7250.

NZD/USD shows indecision below 0.6850.

US30 is on the back foot, trying to defend 36,400.

USOIL trades in profitable territory above 76.50.

XAU/USD is on the offensive, trying to take 1,820 out.

Economic Calendar Picks (GMT)

Other than US Baker Hughes Oil Rig Count (18:00), not much is expected in terms of economic releases, while most European stock markets will not open today or will close early.

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 31 Dec 2021 https://www.whitehouse.gov/briefing-room/press-briefings/2021/12/30/background-press-call-on-president-bidens-call-with-president-putin-of-the-russian-federation/

2

Retrieved 26 May 2022 https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/30/statement-by-press-secretary-jen-psaki-on-president-bidens-phone-call-with-president-vladimir-putin-of-russia/

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