Market Update – April 20/2022

Written by Stuart Cowell

USD slipped from highs, Yields held onto gains, Stocks rallied and Gold & Oil dived. USDJPY hit a new 20-yr high at 129.40 before a sharp reverse. Kashkari (Dove) re: Inflation, Fed will “have to do more” The IMF & World Bank significantly cut global economic growth. Stocks rallied (NASDAQ +2.15%), Netflix lost 200k subscribers in Q1, (first subscriber loss in 10 years) shares dived -18% after hours having gained +3.18% at the close. Asian Markets broadly higher (Nikkei +0.86%), Chinese markets lower.

  • USDIndex spiked over 101.00 & trades at 100.75 as USD cools & Yields hold up. 
  • Equities – USA500 +70 (+1.61%) at 4462.  Recovering 4400. US500FUTS lower at 4438. NFLX will be marked lower on open after subscriber decline and weak outlook. AAL & UAL gained +5.66% & +4.5% respectively. 
  • Yields moved significantly higher, 10-yr moved within a smidge of 3.00% earlier from a close at 2.913%
  • Oil  & Gold both tumbled from Monday highs. USOil tanked from $109.75 to under $102 and trades at $102.80 now. Gold fell from $2 short of $2000 to $1940 now. 
  • Bitcoin recovered from 39.5k on Monday to over 41.3k now.  
  • FX markets – EURUSD has recovered 1.0800 from 1.0760 lows yesterday. USDJPY cooled from decade highs to trade at 128.65 and Cable recovered from 1.2980 lows to 1.3025 now. 

Overnight – Japan – big miss for Trade balance (-0.90T vs -.058T) (Imports higher due to Energy costs, Exports down due to China lockdowns), Industrial Activity missed  significantly (-1.35 vs +0.3%). PBOC did not move rates again, German PPI hotter again (+4.9% vs 1.4% last month).

Today –  EZ Industrial Production, Canadian CPI, US Existing Home Sales, French Election TV Debate, Speeches from Fed’s Daly & Evans. Earnings ASML (beat)  Carrefour, Danone (beat), Heineken, P&G and United Airlines.

Biggest FX Mover @ (07:30 GMT) AUDUSD (+0.55%) Rallied from lows under 0.7340 yesterday to 0.7430 highs today. Next resistance 0.7450. MAs aligned higher, MACD signal line & histogram moving higher, RSI 65 & rising, Stochs in OB zone. H1 ATR 0.0015, Daily ATR 0.0071.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.

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