Collinson Forex Daily Market Commentary

Daily Market Commentary

The Iranian large-scale missile/drone attack on Israel, in retaliation for Israeli attack on their Syrian consulate, raised fears over the weekend that markets may panic on the open. This did not eventuate, as the outcome and backlash was mild. It appears the Iranians have wreaked their revenge upon Israel, in coordination with the US allowing loss of life and damage to be minimised and pride to be restored. It does not appear there will be any further escalation so markets have calmed. US and European bond yields firmed and US equities were lower, but this is markets in their comfort mode. The US Dollar was slightly higher, with the EUR dipping to 1.0630, while the GBP drifted to 1.2440. Oil prices remained steady, which adds to the narrative, although gold continues to surge.

The stronger reserve pushed commodity prices even lower, with the AUD falling to 0.6440, while the NZD fell back below 0.6000. NZ Services (PSI) and Composite (PCI) both fell back into contraction territory, confirming the tough NZ economic conditions. Markets will monitor the Middle East situation and react accordingly.

PLEASE NOTE THE VIEWS EXPRESSED IN THIS COMMENTARY ARE THOSE OF THE AUTHOR AND NOT COLLINSON & CO

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