News Fundamental Analysis

11 April, 2022 – Daily FX Fundamental Update

Market overview

French elections affect the Eurozone

China’s COVID-19 worries the market

Fresh inflation data coming this week

U.S. Dollar strengthening

FOREX

U.S. Dollar Index (USDX)

The U.S. dollar edged higher in early European trades on Monday, helped by the continued strength of the U.S. bond yields. The U.S. Dollar Index traded 0.2% higher at 99.987, showing more strength after gaining around 1% last week. The dollar has received the benefit from a hawkish Federal Reserve, which lifted interest rates by 25 basis points at its March meeting and is set to continue hiking as the year progresses.

Euro (EURUSD)

However, the Euro edged higher to 1.0880, receiving support from the results of the first round of the French presidential election, with incumbent Emmanuel Macron polling the highest number of votes. Policymakers are finding difficulty balancing soaring consumer prices against pressure on growth from the war in Ukraine.

Sterling pound (GBPUSD)

GBP/USD fell 0.3% to 1.2993, falling after growth in the U.K. economy slowed more sharply than expected in February, as gross domestic product rose by 0.1%, down from 0.8% growth in January.

Chinese Yuan (USDCNY)

The USDCNY rose 0.1% to 6.3727 on the back of China’s producer price index growing 8.3% YOY. The world’s second-largest economy has to deal with the inflationary pressures from Russia’s invasion of Ukraine and its latest Covid-19 outbreak.

Elsewhere

USD/JPY rose 0.8% to 125.36, with the yen suffering as the Bank of Japan holds yields near zero, in direct contrast to the Fed’s stance. The Aussie fell 0.4% to 0.7429, falling to a three-week low as iron ore prices dropped.

Indices

U.S. Indices

Dow Jones Futures added 0.03%, S&P 500 Futures gained 0.07% and Nasdaq 100 Futures were up 0.14%. Meanwhile, market participants look ahead to inflation data while monitoring the ongoing conflict in Ukraine.

Market participants will be eying the inflation data set to be released this week. Additionally, the first-quarter earnings season is expected to heat up with JPMorgan Chase and Delta due to report results on Wednesday.

European Indices

European stocks fell on Monday as surging bond yields slammed technology shares, and volatility gripped French major stock. Furthermore, he pan-European STOXX 600 index shed 0.6%, led by a 2.1% slide in technology stocks. Among the European indices, the German DAX slipped 0.8%, and UK’s FTSE 100 inched 0.4% lower. Meanwhile, France’s CAC 40 has shed 1.7% so far in April, while the STOXX 600 is up 0.4%.

Asia-Pacific Indices

Asia Pacific stocks were down during the Asian session, with bonds continuing a selloff with concerns about inflation and monetary tightening.

China’s Shanghai Composite lost 1.93%, and the Shenzhen Component fell 2.53%, while Hong Kong’s Hang Seng Index slid 2.68%. Meanwhile, Japan’s Nikkei 225 was down 0.66%, and the Australian, the ASX 200 edged up 0.12%.

Metals

Gold

Gold prices dropped on Monday while surging Treasury yields boosted the dollar and countered fresh concerns about the war in Ukraine. Rising U.S. yields increase the opportunity cost of holding bullion to hedge against rising inflation.

Spot gold was down 0.2% at $1,941.95 per ounce after hitting a more than one-week high of $1,949.32 earlier. U.S. gold futures were flat at $1,945.70.

Other Metals

Palladium had gained 8.6% on Friday, as the newly refined Russian platinum and palladium were both suspended from trading in London. Spot silver shed 0.2% to $24.69 per ounce while platinum rose 0.5% to $979.97.

Energy

Oil prices dropped by more than $2 per barrel on Monday after a second straight week of decline. However, this drop is due to plans to release a record volume of crude and oil products from strategic stocks. Additionally, continuing coronavirus lockdowns in China raise worries about crude oil demand in the world’s second-largest oil-consuming country.

International Energy Agency (IEA) member nations will release 60 million barrels over the next six months, with the United States matching that as part of its 180-million-barrel release announced in March.

Brent crude futures were down 2% to $100.70 a barrel, while West Texas Intermediate crude lost 2.2% to $96.07.

wwwstartraddev

Share
Published by
wwwstartraddev

Recent Posts

11月期货展期通知

尊敬的客户: 您好,我司期货产品十一月份的展期将至,因新旧期货合约之间存在价格差异,为规避潜在的交易风险,建议客户妥善控制仓位。 期货合约的展期时间如下: 产品代号 产品名称 展期日 FRA40ft France 40 Index Future法国CAC40指数(期货) 2024-11-14 CL-OIL Crude Oil…

3 days ago

11月闭市通知

尊敬的客户: 您好,受即将到来11月份假期影响,STARTRADER的交易时间将有所调整。 请参考下表了解涉及调整的产品情况: 日期 2024年11月4日 2024年11月11日 2024年11月15日 2024年11月20日 假期 万圣节 卡塔赫纳独立日 共和国日 黑人意识日 BVSPX巴西股指(圣保罗指数) 正常…

2 weeks ago

即将到来的美国夏令时调整交易时间

尊敬的客户: 请注意,由于2024年11月3日实施的美国夏令时变化,以下产品的交易时间将会调整。 产品代号 交易时间 (GMT+2) Cocoa美国可可豆现货 星期一~星期四: 11:45-20:30星期五: 11:45-20:27 Coffee阿拉比卡咖啡豆现货 星期一~星期四: 11:15-20:30星期五: 11:15-20:27 Sugar11号精糖现货 星期一~星期四:…

2 weeks ago

11月闭市通知

尊敬的客户: 您好,受即将到来11月份假期影响,STARTRADER的交易时间将有所调整。 请参考下表了解涉及调整的产品情况: 日期 2024年11月1日 假期 万圣节 USDCLP美元兑智利披索 闭市 USDINR美元兑印度卢比 闭市 *所有日期均为GMT+3(MT4/MT5服务器时间) 请注意:在市场流动性下降情况下,点差可能会较正常平均水平显著扩大,我们建议客户在交易时要妥善管理仓位、确保账户资金充足,并且进行谨慎交易。 如果您有任何疑问或需要任何帮助,请随时发送电子邮件至 info@startrader.com 或透过线上聊天 https://www.startrader.com/ 联系我们。 感谢您的支持!STARTRADER团队

2 weeks ago

(更新版)10月期货展期通知

尊敬的客户: 您好,我司期货产品十月份的展期将至,因新旧期货合约之间存在价格差异,为规避潜在的交易风险,建议客户妥善控制仓位。 期货合约的展期时间如下: 产品代号 产品名称 展期日 VIX Volatility恐慌指数期货 2024-10-11 FRA40ft France 40 Index Future法国CAC40指数(期货) 2024-10-16…

3 weeks ago

新美国存托凭证产品上架

尊敬的用户: 我们很高兴地宣布,STARTRADER 将于2024年10月28日推出十六款新产品,旨在为我们的客户提供更加多样化的投资组合。这些新产品将仅在我们的 MT5 服务器上提供。 请参阅下表了解新产品的详细信息: 产品代码 说明 类型 合约规模 最小手数 最大手数 3日库存费 交易时间(GMT+3) VFS…

3 weeks ago