Daily Market Bulletin – 8 February 2022

Market Developments

Investors appeared cautious as they digest trade developments, fresh Ukraine-related news and the collapse of the Nvidia-Arm acquisition.

The US Commerce Department added 33 Chinese companies to its Unverified List on Monday. The action was taken because it was unable to verify the legitimacy and reliability of those entities, in terms of receiving US exports. [1]

US President Biden said yesterday that "there will be no longer a Nord Stream 2" if Russia invades Ukraine, during a joint press conference with the German Chancellor. Mr Scholz was not explicit, but said that "We will be united, we will act together, and we will take all the necessary steps." [2]

Nvidia's $40 billion acquisition of UK chipmaker Arm, from Softbank has been canceled, as per today's press release [3]. The deal had been announced in September 2020, but had faced regulatory scrutiny in many countries, with the US Federal Trade Commission (FTC) having sued to block the acquisition in December 2021.

Speaking at the European Parliament on Monday, ECB President Lagarde reiterated "A rate hike will not occur before our net asset purchases finish", but appeared to be rolling back from last week's comments on rate hikes. [4]

Main Asia-Pacific stock markets were mostly down, European futures are upbeat, while US 10YR Yields extend gains.

In the FX space, the US Dollar remains upbeat, whereas the JPY Baskets stays on the back foot .

Instruments Snapshot

EUR/USD stays on the defensive, but holds above 1.1400.

GBP/USD is soft below 1.3550.

USD/JPY advances, after yesterday's losses, testing 115.50.

USD/CAD rebounds towards 1.2700, following its poor start to the week.

AUD/USD trades with caution above 0.7100.

NZD/USD extends Monday's gains, but rejects 0.6650.

GER30 trades with positive undertone, around 15,200.

US30 is tepid around 35,100.

USOIL stays on the defensive above 91.00, after Friday's 7+ year highs (93.17).

XAU/USD is soft, breaching 1,820.

Economic Calendar Picks (GMT)

No major economic releases are expected today, but markets will be keeping an eye on Iran nuclear talks, as the eighth round of negotiations is expected to resume today in Vienna.

On the US earnings front, Pfizer (before market open) and Lyft (after market close) are some of the companies that stand out today.

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 08 Feb 2022 https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/2903-2022-02-05-press-release-final/file

2

Retrieved 08 Feb 2022 https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/07/remarks-by-president-biden-and-chancellor-scholz-of-the-federal-republic-of-germany-at-press-conference/

3

Retrieved 08 Feb 2022 https://group.softbank/system/files/news/press/2022/20220208/20220208_0_en.pdf

4

Retrieved 01 Jul 2022 https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220207~7208d9e3a2.en.html

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}