Daily Market Outlook, April 22, 2026 

Patrick Munnelly, Partner: Market Strategy, Tickmill Group

US equity futures moved higher, and the dollar softened after President Trump said the ceasefire with Iran would be extended indefinitely, giving markets a modest relief bid after two sessions dominated by geopolitical uncertainty. S&P 500 futures rose 0.5% and Nasdaq 100 futures gained 0.6%, as investors leaned into the view that a sustained de-escalation could ease pressure on energy prices and reduce the near-term drag on global growth sentiment. The move comes after a more cautious cash session on Tuesday, when major US indices fell for a second straight day as markets digested mixed signals around US-Iran negotiations. Trump said talks had stalled because of a “seriously fractured” leadership structure in Tehran, while also indicating that the US would hold off on further strikes. At the same time, Washington is maintaining its blockade around the Strait of Hormuz, where shipping conditions remain difficult, leaving a meaningful geopolitical risk premium in place despite the more constructive headline tone. Across assets, the initial market read was classic relief trade. The dollar weakened, while equity futures firmed on hopes that reduced escalation risk could eventually bring oil prices lower and improve the macro backdrop. Even so, the energy market remains far from calm, with global crude still trading around $98/bbl, underscoring that investors are not yet willing to fully price out supply disruption risk. Overnight, the MSCI Asia Pacific Index fell 0.7%, tracking the previous weakness on Wall Street as investors continued to question how durable any pause in hostilities will prove. The broader tone across the region remained cautious, and European stocks were set to open lower, suggesting that, while Trump’s announcement has helped stabilise sentiment at the margin, it has not fully reversed the defensive bias.

Kevin Warsh’s confirmation hearing was more notable for what it implied about the future Fed policy framework than for any immediate market signal. Once the discussion moved past his personal finances, Warsh largely stuck to expected themes: support for continued balance sheet reduction, criticism of the Fed’s current communications strategy, and a preference for a less pre-committed, more discretionary approach to policy. His references to “regime change,” a “new framework,” and “new tools,” alongside clear discomfort with “pre-deciding” outcomes ahead of meetings, pointed to a potentially meaningful shift in style from the Powell era. In practical terms, that suggests a Fed that could become less forward-guiding and less reliant on devices such as the dot plot, with a more meeting-by-meeting approach resembling the BoE under Bailey. That said, there was little in the hearing that materially shifted the near-term rates outlook. Warsh said less than expected about the implications of the AI boom for policy, and overall, his remarks were difficult to interpret as market-moving—something that likely worked in his favour, as he sought to project credibility and independence despite Trump’s public calls for lower rates. The most intriguing detail came on inflation, where Warsh flagged a preference for trimmed mean measures. That matters because the Dallas Fed trimmed mean currently runs around 0.7pp below core PCE, potentially offering one analytical route to a somewhat softer reading of underlying inflation in the near term. Even so, the broader takeaway was process change rather than policy surprise: a possible shift in how the Fed communicates and frames decisions, rather than a clear signal of imminent dovishness.

Domestically, UK March CPI was firm, but not alarming enough to force the MPC into immediate action. Headline inflation printed at 3.3% y/y, above the 3.0% rate the BoE had expected before the US-Iran energy shock, but still somewhat better than feared given the March MPC minutes had pointed to something close to 3.5%. More reassuringly, core CPI held at 3.1% y/y, in line with the pre-conflict forecast, suggesting there has not yet been a meaningful near-term broadening of energy-driven price pressure. Food inflation rose to 3.7% y/y, but even that came in a touch below the BoE’s pre-war projection. In short, while the inflation backdrop remains too firm for comfort, the data do not yet suggest a materially worse regime than the MPC had begun to prepare for. The less comfortable part of the report was services inflation, which rose 0.2pp to 4.5% y/y and will remain the key area of concern for policymakers. Fuel-sensitive components, such as airfares, at least partly contribute to that increase, although the ONS explanation leaves some ambiguity regarding the exact drivers. Even so, the broader market takeaway is that the release probably leans against a rate hike next week. The lack of a major upside surprise supports the view that Bailey can keep a divided MPC on hold for now, buying time to assess whether the energy shock broadens into more persistent domestic inflation pressure before the Committee is forced toward either the hawkish or dovish edge.


Overnight Headlines

ECB Has ‘Luxury’ To Wait On Interest Rate Rises, Says Top Policymaker

UK, France Convene Fresh Hormuz Summit On Re-Opening Planning

Trump Extends Iran Cease-Fire Indefinitely With Peace Talks In Limbo

US, Iran Peace Talks Uncertain With Vance Trip Scrapped

Iran Talks On Hold Because Of Trump’s Blockade

Fed Chair Pick Warsh Makes Case For Smaller Fed Holdings In Hearing

Sen Elizabeth Warren: Warsh Testimony Shows Lack Of Independence

Japan’s Export Growth Quickens As China Demand Rebounds

BoJ Watchers Now See June Rate Hike As Iran War Pushes Back Bets

UK, France Convene Fresh Hormuz Summit On Re-Opening Planning

Anthropic’s Mythos Model Is Being Accessed By Unauthorized Users

United Airlines Cuts Full-Year Forecast On Rising Fuel Costs

Capital One Boosts Provision For Bad Loans, Misses Estimates

BHP Expects Annual Copper Output In Upper Half Of Guidance

FX Options Expiries For 10am New York Cut 

(1BLN+ represents larger expiries and is more magnetic when trading within the daily ATR.)

  • EUR/USD: 1.1850 (EU2.89b), 1.1750 (EU1.15b), 1.1800 (EU1.09b)

  • USD/JPY: 153.00 ($982m), 158.00 ($866.5m), 156.00 ($693.1m)

  • AUD/USD: 0.6670 (AUD1.47b), 0.6200 (AUD1.05b), 0.6000 (AUD500m)

  • USD/CNY: 6.5750 ($815m), 7.5050 ($666.2m)

  • GBP/USD: 1.3250 (GBP776.5m), 1.2350 (GBP401m), 1.3350 (GBP370.1m)

  • USD/CAD: 1.3700 ($520m)

  • NZD/USD: 0.5560 (NZD1.05b), 0.6100 (NZD606.6m), 0.5835 (NZD475m)

  • USD/MXN: 17.52 ($316.4m)

  • EUR/GBP: 0.8800 (EU310.7m)

  • USD/BRL: 5.3100 ($669.9m), 5.4900 ($570m), 5.6000 ($455.4m)

CFTC Positions as of April 10, 2026: 

  • Equity fund speculators increase S&P 500 CME net short position by 186,638 contracts to 414,897

  • Equity fund managers raise S&P 500 CME net long position by 71,259 contracts to 1,011,108

  • Speculators increase CBOT US 5-year Treasury futures net short position by 72,816 contracts to 1,625,745

  • Speculators trim CBOT US 10-year Treasury futures net short position by 23,259 contracts to 800,365

  • Speculators trim CBOT US 2-year Treasury futures net short position by 8,209 contracts to 1,703,806

  • Speculators increase CBOT US UltraBond Treasury futures net short position by 40,440 contracts to 300,823

  • Speculators increase CBOT US Treasury bonds futures net short position by 15,120 contracts to 74,116

  • Bitcoin net long position is 2,193 contracts

  • Swiss franc posts net short position of -34,097 contracts

  • British pound net short position is -54,724 contracts

  • Euro net long position is 26,018 contracts

  • Japanese yen net short position is -83,208 contracts


Technical & Trade Views

SP500

  • Daily VWAP Bullish

  • Weekly VWAP Bullish

  • Above 7000 Target 7200

  • Below 6950 Target 6850

DXY

  • Daily VWAP Bullish

  • Weekly VWAP Bearish

  • Above 98.60 Target 99

  • Below 98.50 Target 97

EURUSD 

  • Daily VWAP Bullish

  • Weekly VWAP Bullish

  • Above 1.1720 Target 1.19

  • Below 1.1690 Target 1.1590

GBPUSD 

  • Daily VWAP Bearish

  • Weekly VWAP Bullish

  • Above 1.3430 Target 1.3610

  • Below 1.34 Target 1.3290

USDJPY 

  • Daily VWAP Bullish

  • Weekly VWAP Bearish

  • Above 158.50 Target 161

  • Below 157.30 Target 156.50

XAUUSD

  • Daily VWAP Bearish

  • Weekly VWAP Bullish

  • Above 4600 Target 5000

  • Below 4500 Target 4350

BTCUSD 

  • Daily VWAP Bullish

  • Weekly VWAP Bullish

  • Above 73.5k Target 80k

  • Below 72.6k Target 70.5k