2022 Trading and Markets Outlook: Pop Goes the Liquidity Bubble
Last year was an exciting year concerning financial markets. Economic activity was still fragile, and inflation was determined to be from the low-base of 2020 and the pandemic period. However, yields were appreciating, and the USDOLLAR bottomed the week of February 22nd. This marked a shift in dynamics. Inflation continued to climb, and participants debated whether it was transitory or a more sustained phenomenon. The SPX500 appreciated close to 28% by year-end, and central banks had started to swivel from accommodative to more contractionary biases. On November 30th, in relation to "transitory" as a description of inflation, Fed Chair Powell told Congress that "it's probably a good time to retire that word."
In this webinar FXCM Senior Market Specialists Nikos Tzabouras and Russell Shor discuss the outlook for 2022 in a logical flow. The webinar addresses the possible impact on market forces from the Fed's change of policy bias. We examine equity markets, treasury yields, the USDOLLAR, XAUUSD (Gold), BTCUSD (Bitcoin), and more.
Featured Image by GraphicMama-team from Pixabay
FXCM Research Team
FXCM Research Team consists of a number of FXCM's Market and Product Specialists.
Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.