Daily Market Bulletin – 7 April 2022

Market Developments

Investors were cautious as after Wednesday's hawkish Fed minutes, which revealed that many officials believe that "one or more 50 basis point increases in the target range could be appropriate at future meetings". Participants also thought that the balance sheet run-off could begin as early as the next meeting in May and generally agreed that a pace of 95 billion/month "would likely be appropriate". [1]

The Chinese mainland reported 1,323 new Covid-19 infections (local & imported) for April 6, marginally lower than the 1,415 reported on the previous day. There were also 21,784 new asymptomatic carriers. [2]

International Energy Agency (IEA) Executive Director Birol twitted yesterday that the agency will release 120 million barrels of oil, including the 60 million contributed by the US. [3]

US Department of Defense will send additional javelin anti-armor systems to Ukraine, which will bring the total U.S. security assistance to the country, to more than $1.7 billion since the start of the war. Press Secretary Kirby said that Russian troops have moved out of Kyiv and Cherniniv.

Data just released from Germany, showed that Industrial Production rose 3.2% year-over-year in March, form 1.4% prior (revised). The monthly reading came in at +0.2%, down from +1.4% prior (revised).

Main Asia-Pacific stock markets were down, taking their cues from Wall Street, while European futures are tepid but try to react. On the FX space, the US Dollar steadies after yesterday's advance, the JPY Basket rises and Antipodeans (AUD, NZD) are soft against both.

Instruments Snapshot

EUR/USD is supported and reclaims 1.0900, trying to avoid a sixth straight negative day.

GBP/USD trades with positive undertone below 1.3100.

USD/JPY is cautious above 123.50, following a five-day profitable run.

USD/CAD is upbeat probing, 1.2550.

AUD/USD is on the back foot below 0.7500.

NZD/USD trades in similar mood, breaching 0.6900.

GER30 is tepid above 14,100, but tries to cover earlier losses.

US30 defends 34,400, but stays on the back foot.

USOIL trades with positive undertone, trying to surpass 98.00.

XAU/USD consolidates around 1,925.

Economic Calendar Picks (GMT)

Eurozone Retail Sales are due at 09:00, while the European Central bank (ECB) releases the accounts of is March policy meeting. The bank had then announced a faster tapering and an earlier conclusion to its asset purchases program.

US Jobless Claims are expected at 12:30 and markets will also be looking forward to a series of Fed speakers, including prominent hawk and voter Mr Bullard.

Tesla will hold an opening party at its Giga Factory in Texas today, with CEO Elon Musk expected to speak at 9 pm local [5]. Tesla is scheduled to publish its financial results for Q1 2022 on April 20.

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 07 Apr 2022 https://www.federalreserve.gov/monetarypolicy/fomcminutes20220316.htm

2

Retrieved 07 Apr 2022 http://english.www.gov.cn/statecouncil/ministries/202204/07/content_WS624e80edc6d02e5335328de6.html

3

Retrieved 07 Apr 2022 https://twitter.com/fbirol/status/1511744978724306953

5

Retrieved 27 Jun 2022 https://twitter.com/elonmusk/status/1511940411685801984

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