April 26 2022 Daily Forex Analysis - Finveo

April 26 2022
Daily Forex Analysis

Daily News
•   Global Stock Markets are rising this morning on the People's Bank of China's promise to support the economy. MSCI Asia Pacific Index turned positive on the
    new trading day after losing three consecutive trading days. China's CSI 300 and Hong Kong Hang Seng gained more than 1%. In particular, Chinese tech stocks
    are rebounding with dips after falling into oversold territory. The Hang Seng Technology Index, which fell to its lowest level in more than a month on Monday,
    rose close to 6% for a while. While U.S. futures indexes are not changing much, European futures indexes are up more than 1%. U.S. bond yields rose as the
    dollar fell. The U.S. 10-year bond yield, which fell close to 8 basis points yesterday, is above 2.85%, up 3 basis points this morning.

•   The People's Bank of China is trying to ease the markets with its promise to increase support for the economy. The People's Bank of China's pledge of support
    boosted Asian stock markets, particularly tech stocks. The People's Bank of China (PBOC) has pledged to increase support for the economy to reassure
    investors amid weak growth outlook and concerns over Covid restrictions. In a statement from the PBOC, the People's Bank of China will "increase support for
    the real economy of prudent monetary policy, especially for sectors and small businesses that have been hit hard by the pandemic." The bank said it will
    support the healthy and stable development of financial markets and provide a good monetary and financial environment. The PBOC reiterated that it will
    keep liquidity reasonably abundant. This statement comes after the PBOC cut its FX reserve requirement ratios by 1 percentage point yesterday to contain the
    losses in the yuan. NatWest Group Plc. After the announcement, China Economist Liu Peiqian stated that he expects the policy easing to continue to be
    targeted, covering smaller companies and sectors more affected by Covid-19, and predicted that more comprehensive support may come after the epidemic is
    under control.

•   On the first trading day of the week, IFO business confidence in Germany, the largest economy in Europe, rose to 91.8
              despite the war in Ukraine, surprisingly. The expectations index in the country rose to 86.7 in April. ECB Chairman C.
EUR/USD       Lagarde said the ECB's net asset purchases will end in July or August and interest rates will rise later in the year. The weak
              risk appetite in the markets continues this week after Fed Chairman Powell stated that a 50 basis point rate hike would be
              on the table last week. With the dollar index exceeding the 101.0 level again, the parity was tested below the 1.07 level.

                                                                                        •   Resistance: 1.0785 – 1.0859 – 1.0904
                                                                                        •   Support: 1.0666 – 1.0622 – 1.0548

•   GBP/USD started the new week with selling pressure. Weak data from the UK reduces the demand for the British Pound

GBP/USD       and causes a decline in the pair. After disappointing UK Retail Sales data on Friday, the Confederation of British Industry
              reported yesterday that the Manufacturing Optimism Balance fell to its lowest level since April 2020. The worsening
              coronavirus situation in China and the prolonged Russia-Ukraine conflict continue to affect the mood of the market.

                                                                                       •   Resistance: 1.2823 – 1.2906 – 1.2969
                                                                                       •   Support:    1.2677 – 1.2614 – 1.2532

•   It is seen that the ounce of gold is trying to stay above $1900 this morning after yesterday's hard selling. Yesterday, albeit

XAU/USD       limited, it slumped below the $1900 level, this morning it was observed that there was a slope below this level. For now, it
              leaves its place to reaction buying as limited movements are seen below the $1900 level. With the People's Bank of China
              giving supportive messages to the market, purchases are watched in global stock markets this morning. This issue may
              continue today. There are U.S. data to be released for today. The effect on ounce gold may be limited.

                                                                                        •   Resistance: 1924$ – 1950$ – 1967$
                                                                                        •   Support:    1881$ – 1864$ – 1838$

• Reaction purchases are seen in oil prices this morning. The Chinese Central Bank's verbal intervention in the market and its
             promise to support the economy helped the risk appetite to recover. This morning, while purchases are observed in Asian
BRENTOIL     stock markets and U.S. futures, it is seen that there is an increase in oil prices. Recession expectations for the Chinese
             economy had driven oil prices down in recent days, as it triggered the possibility of a decrease in oil demand. Messages from
             China today are creating optimism in the market. Its effect can be expected to continue.

                                                                                   •   Resistance: 105.37 $ – 108.28 $ – 111.23 $
                                                                                   •   Support:    99.51 $ – 96.56 $ – 93.65 $

• Stock futures were little changed in the early hours of Tuesday morning after stocks bounced in the afternoon and ahead of

S&P500     Big Tech earnings. Futures tied to the tech focused Nasdaq index fell 0.13%. Dow Jones Industrial Average futures and S&P
           500 futures were little changed. In regular trading Monday, the Nasdaq Composite jumped 1.3%. The Dow advanced 0.7%,
           after cutting a 500-point loss from earlier in the day, and the S&P 500 gained 0.6%. The moves came as tech names like
           Microsoft, Alphabet and Meta Platforms rallied in the afternoon, amid falling interest rates and ahead of an intense week of
           earnings for mega cap tech stocks. Twitter also jumped after its board accepted Tesla CEO Elon Musk’s offer to take it private.

                                                                                       •   Resistance: 4.328 – 4.462 – 4.429
                                                                                       •   Support: 4.227 – 4.160 – 4.126

Daily Stock News
•   Twitter — Shares of the social media rose 5.7% on news that Twitter would accept a buyout from Elon Musk to take the company private for $54.20 per share.
    (Positive)

•   Oil stocks — Energy stocks dipped amid renewed fears of a global slowdown as the country grapples with a Covid outbreak. Shares of Chevron and Exxon Mobil
    fell 2.2% and 3.4%, respectively. (Negative)

•   Verizon — The stock fell nearly 3.1% after Goldman Sachs downgraded Verizon to neutral from buy on valuation, following a big subscriber loss for the telecom
    giant. Goldman said Verizon is positioned to remain a wireless leader in the 5G cycle but also anticipates a slowdown in revenue growth. (Negative)

•   Advanced Micro Devices, Marvell — AMD’s stock rallied 2.9% after Raymond James upgraded it to outperform and said its stock could surge 80%. Raymond
    James also upgraded Marvell to market perform, which sent shares up 3.9% (Positive)

•   Coca-Cola — Shares of Coca-Cola rose after the company beat analysts’ expectations on the top and bottom lines in the recent quarter. The beverage giant
    reported adjusted earnings of 64 cents per share on revenues of $10.5 billion, while analysts expected 58 cents per share on $9.83 billion in revenue. (Positive)

•   Activision Blizzard — The videogame publisher’s stock moved 0.7% lower after missing analyst estimates in the first quarter. Activision Blizzard cited
    disappointing demand for its “Call of Duty: Warzone” among the contributors to the weak earnings. (Negative)

•   Kellogg — Shares of Kellogg dipped 1.8% after Deutsche Bank downgraded the stock to a hold. The bank cited the impact from workers’ strikes, rising inflation
    and supply chain disruptions among the reasons for the downgrade. (Negative)

Daily Data and Economic Calendar
  Currency        Last              Daily Change (%)                Weekly Change (%)   YTD Change (%)
EURUSD           1,0697                   -0,14                           -0,85              -5,91
GBPUSD           1,2729                   -0,09                           -0,85              -5,93
USDJPY           127,85                    0,21                            0,49             -10,00
USDCHF           0,9592                    0,00                           -0,18              -4,83
EURGBP          0,84037                    0,05                            0,09              0,12

 Index Future     Last              Daily Change (%)                Weekly Change (%)   YTD Change (%)
SPX INDEX       4296,12                    0,57                            0,57              -9,86
GXM2 INDEX       14055                     0,70                           -0,94             -11,66
DMM2 INDEX       33844                    -0,38                            0,32              -6,35

 Commodities      Last              Daily Change (%)                Weekly Change (%)   YTD Change (%)
GCJ2 Comdty      1897,5                    0,23                           -1,73               3,63
XAUUSD Curncy   1898,47                    0,01                           -1,74               3,76
CLA Comdty       98,68                     0,15                           -3,31              34,51
COM2 Comdty      102,71                    0,41                           -3,67              34,49

                          Time    Cur.                          Event
                          00:30   JPY                     Japan Jobless Rate
                          13:30   USD                U.S. Durable Goods Orders
                          14:00   USD                U.S. FHFA House Price Index
                          15:00   USD          U.S. Conf. Board Consumer Confidence
                          15:00   USD           U.S. Richmond Fed Manufact. Index
                          15:00   USD                   U.S. New Home Sales