20 April 2022 – Daily FX Update

Overview

Japanese Yen near 130

Gold edges lower

Inflation is Japan’s hope

Global growth rates drop

FOREX

U.S. Dollar Index

The U.S. dollar slid lower in early trades but remained strong. Additionally, Federal Reserve (Fed) officials pointed to upcoming hefty interest rate hikes. The U.S. Dollar Index traded 0.2% lower at 100.795 during the early trades.

The Federal Reserve’s meeting in early May is the most important upcoming event in the market. It is expected that the central bank will hike more aggressively than it announced at its March meeting. Meanwhile, U.S. Treasury yields pushed higher, with 10-year yields touching 2.981% for the first time since December 2018.

The Japanese Yen

Bank Of Japan (BoJ) offered to buy an unlimited amount of Japanese government bonds on Wednesday. Furthermore, BOJ attempts to keep its 10-year yields from breaking through its 0.25% ceiling.

As a result, USDJPY climbed to 129.40 for the first time since April 2002. Later on, the pair edged to 128.70 after Japanese Finance Minister railed against a weakening currency.

The Euro

The European currency gained0.2% to 1.0810, climbing off multi-month lows against the dollar. However, the Euro remains under the impact of the war in Ukraine. The uncertainty surrounding the French presidential election also weighing on the single currency.

This debate could be decisive in the tight race to decide who will run the country for the next five years, with any signs of a Le Pen victory likely to pressure the euro given her anti-EU stance.

Indices

U.S. indices

U.S. stocks surged Tuesday amid stronger-than-expected corporate earnings. However, the tech-heavy Nasdaq led the way for gains in U.S. markets, as many corporations reported stronger-than-expected earnings. Those reports helped investors shake off warnings from experts of a slowdown in global growth rate, which weighed on other sectors like bonds and oil.

The Federal Reserve looks set to raise its interest rate by 50 basis points when it meets next month, and a 75 basis-point hike has not been ruled out as Fed officials scramble to curtail inflation. Furthermore, the benchmark 10-year Treasury yield was last at 2.942%, down slightly after hitting its highest levels in three years.

The Dow Jones Industrial Average rose 1.45%, the S&P 500 gained 1.61%, and the Nasdaq Composite jumped 2.15%.

European Indices

European stock markets edged higher Wednesday, but gains look tentative as investors monitor developments in Ukraine as well as French political uncertainty. The DAX 0.3% higher, the CAC 40 rose 0.5% and the FTSE 100 climbed 0.1%.

The turmoil encircling Russia’s invasion drove the International Monetary Fund (IMF) to cut its projections for the second time this year. The IMF forecasted global growth rate of 3.6% in 2022 and 2023, a drop of 0.8 and 0.2 percentage points, respectively.

Asia-Pacific Indices

Asia Pacific stocks were mostly down this morning, as the U.S. equity futures are also on a downward trend. Moreover, the IMF cut its global growth outlook, the Russian invasion of Ukraine, and China’s COVID-19 outbreak are weighing heavily on the equity markets.

Hong Kong’s Hang Seng Index was down 0.39% while China’s Shanghai Composite fell 0.59%. The People’s Bank of China kept its loan prime rates (LPRs) steady, with the one-year LPR at 3.7% and the five-year LPR at 4.6%. Meanwhile, Japan’s Nikkei 225 gained 0.49%, while the Australian ASX 200 was up 0.34%.

Metals

Gold prices fell to their lowest in almost two weeks, as the strong dollar and Treasury yields weigh the safe haven. U.S. Treasury yields hovered near multi-year highs, as investors prepared for the Federal Reserve to aggressively raise interest rates.

Spot gold was down 0.4% at $1,941.40 per ounce, after hitting its lowest since April 8, while U.S. gold futures fell 0.7% to $1,944.80. While in Other metals, spot silver dipped 0.8% to $24.96 per ounce, and platinum eased 1.5% to $976.47, while palladium rose 0.3% to $2,379.85.

Crude Oil

Oil prices rebounded from the previous session amid concerns about tighter supplies from Russia and Libya. Moreover, industry data showed a drop in U.S. crude inventories last week.

Brent crude futures rose 0.6% to $107.91 a barrel, while the front-month WTI crude futures contract rose 0.5% to $103.02 a barrel. Both benchmarks fell 5.2% in volatile trading on Tuesday after the International Monetary Fund (IMF) on Tuesday slashed its forecast for global growth by nearly a percentage point.

Russia produced about 300,000 bpd below its target in March at 10.018 million bpd, based on secondary sources, the report showed. Meanwhile, Libya’s National Oil Corporation declared force majeure at the Brega oil port on Tuesday, saying it did not fulfill its commitments to the oil market.

shmarkets

Share
Published by
shmarkets

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