21 April 2022 – Daily FX Update

Overview

Dollar index weakens

Euro gains grounds

Oil in supply and demand shock

Gold hovers above $1,950

FOREX

U.S. Dollar Index

The U.S. dollar edged lower in early European trade Thursday as the world’s key finance ministers meet, but expectations for aggressive Federal Reserve monetary tightening keep it elevated. Benchmark 10-year U.S. Treasury yields have pulled back from the highest level since December 2018 at close to 3%, helping the dollar to hand back some recent gains.

The Dollar Index traded 0.3% lower at 100.165, retreating from the more than the two-year peak of 101.03 seen earlier in the week.

Japanese Yen (USDJPY)

The U.S. dollar hit a two-decade high of 129.430 against the yen on Wednesday, after the Bank of Japan (BOJ) stepped into the bond market for the third time in three months to defend its zero-percent yield target. However, the pair traded up 0.48% to 128.50 during the early sessions.

 The central bank offered to buy unlimited amounts of 10-year Japanese government bonds for four consecutive sessions on Wednesday ahead of handing down its policy decision in the following week.

Euro (EURUSD)

The euro perked up to a one-week high on Thursday as market expectations solidified for a first interest rate hike from the European Central Bank as early as July. Joachim Nagel, president of Germany’s Bundesbank, joined fellow policymakers this week in saying the ECB could raise interest rates at the start of the third quarter.

Against the U.S. dollar, the euro rose 0.4% to $1.0895 and its highest level since April 14. The euro’s rise was quite broad-based, with the currency chalking up gains versus the yen, Swiss franc, and Norwegian crown.

Indices

U.S. indices

U.S. stocks ended in mixed territory on Wednesday. Thus, the Dow Jones Industrial Average ended higher for the second straight day, the S&P 500 was flat, and the Nasdaq Composite fell sharply.

U.S. Treasury yields dipped after hitting three-year highs as buyers emerged. Benchmark 10-year yields were last at 2.8436%, after reaching the highest since December 2018. The Dow ended up 0.71%, while the S&P 500 fell 0.06% and the Nasdaq dropped 1.22%.

European Indices

European stock markets opened marginally higher. Meanwhile, investors tracking developments in Ukraine and the French presidential campaign.

European Central Bank President Christine Lagarde taking part in a panel discussion at the IMF-World Bank meeting later Thursday, along with Fed Chair Jerome Powell. Her comments will be studied carefully for clues about future monetary policy after the Eurozone consumer price index soared to 7.5%, from 5.9% the previous month.

The DAX futures traded 0.4% higher, CAC 40 futures climbed 0.3% and the FTSE 100 futures rose 0.3%.

Asia-Pacific Indices

Asia Pacific stocks were mixed on Thursday morning, while U.S. equity futures were on an upward trend, as a continuous debate around whether inflation is peaking saw a rally in U.S. Treasuries.

Japan’s Nikkei 225 jumped 1.16%, and the Australian ASX 200 edged up 0.19%. Meanwhile, Hong Kong’s Hang Seng Index was down 0.40%. China’s Shanghai Composite edged down 0.11%.

Metals

The war in Ukraine remains the major threat in the market, as investors can not see an improvement in the political talks. On the other hand, G7 finance ministers announced plans to provide additional support to Ukraine of at least $24 billion for 2022 and beyond.

European Central Bank President Christine Lagarde is taking part in a panel discussion at the IMF-World Bank meeting later Thursday, along with Fed Chair Jerome Powell. Market participants await these speeches and looking to find more clues about the monetary policy of each central bank.

Additionally, gold futures fell 0.2% to $1,951.00, while Spot gold fell 0.25% to $1,954.7 an ounce.

Crude Oil

Oil prices rose on Thursday as concerns about supply due to a potential European Union (EU) ban on Russian oil came to the fore, days after diminished supplies from Libya rocked the market. In fact, Libya said the country was losing more than 550,000 barrels per day of oil output due to blockades at major fields and export terminals.

The demand outlook in China continues to weigh on the market. However, the world’s biggest oil importer slowly eases strict COVID-19 curbs that have hit manufacturing activity and global supply chains.

Brent crude futures rose 1.24% to $108.12 a barrel, while U.S., while WTI crude futures gained 1.23% to 103.45 a barrel.

shmarkets

Share
Published by
shmarkets

Recent Posts

美国股票杠杆调整通知

尊敬的用户: 您好,为进一步提升STARTRADER的竞争力和优化客户的交易体验,从2024年11月25日起,所有美股产品的杠杆将进行调整。 调整详情如下: 产品代号 原杠杆 变更后杠杆 All US Shares美股 1:20 1:33 *所有日期均以 GMT+2 为准(MT4/MT5 服务器时间)。 强烈建议持仓客户相应管理您的仓位,因为上述工具的杠杆将于 2024…

3 days ago

双重认证(2FA):操作一小步,安全一大步

尊敬的客户 STARTRADER星迈始终把客户的利益放在首位,通过双重认证(2FA)为您的交易之旅保驾护航。您可点击此处查看启用流程,轻松完成设置。 双重认证,或称双因素认证,即2 Factor Authentication——2FA验证,是全球领先金融机构广泛使用的重要安全措施之一,用于进一步保障客户账户和支付的安全性。 迈出这关键的一步, 让双重认证(2FA)为您的交易之旅护航, 助您安全畅游交易世界,收获丰硕成果! 如果您有任何疑问或需要协助,请发送电子邮件至 info@startrader.com 或通过在线聊天 https://www.startrader.com/ 联系我们, 我们随时乐意为您提供帮助。

6 days ago

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…

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…

3 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:…

3 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

3 weeks ago