2022 Trading and Markets Outlook: Pop Goes the Liquidity Bubble

Last year was an exciting year concerning financial markets. Economic activity was still fragile, and inflation was determined to be from the low-base of 2020 and the pandemic period. However, yields were appreciating, and the USDOLLAR bottomed the week of February 22nd. This marked a shift in dynamics. Inflation continued to climb, and participants debated whether it was transitory or a more sustained phenomenon. The SPX500 appreciated close to 28% by year-end, and central banks had started to swivel from accommodative to more contractionary biases. On November 30th, in relation to "transitory" as a description of inflation, Fed Chair Powell told Congress that "it's probably a good time to retire that word."

In this webinar FXCM Senior Market Specialists Nikos Tzabouras and Russell Shor discuss the outlook for 2022 in a logical flow. The webinar addresses the possible impact on market forces from the Fed's change of policy bias. We examine equity markets, treasury yields, the USDOLLAR, XAUUSD (Gold), BTCUSD (Bitcoin), and more.

Featured Image by GraphicMama-team from Pixabay

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FXCM Research Team

FXCM Research Team consists of a number of FXCM's Market and Product Specialists.

Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.

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