Collinson Forex - Weekly Market Commentary and Calendar

Weekly Market Commentary

Markets closed the week on a positive note, supported by better than expected employment numbers and despite trade sanctions. The US implemented $34 Billion in tariffs on China, who retaliated, but Trump has threatened a further $500 Billion!? The trade war ratchets up but markets shrugged this off. Non-Farm Payrolls came in stronger than expected, although the Unemployment rate edged up to 4%, due mainly to a rising participation rate. This all floated the markets boat.

German Industrial Production jumped 2.6% and a risk off market environment allowed the EUR to recover to 1.1750, while the GBP approaches 1.3300. 'Brexit' pressures are a rising crescendo, with Tory Cabinet Ministers meeting to decide the way forward. The AUD broke back above 0.7400, while the NZD blew through 0.6800, as trade fears settled. Commodity and Trade exposed nations, such as Australia and NZ, remain heavily exposed to a global trade war and the associated currencies will reflect this.

Weekly Market Calendar

9/7 Japan Current Account, NZ House Sales, German Trade Exports/Imports, German Current Account

10/7 NZ Credit Card Spending, Australia Consumer Confidence, Australia Business Confidence, China CPI, UK Trade, UK Industrial/Manufacturing Production, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism, UK GDP

11/7 Australia Consumer Confidence, US Weekly Mortgage Applications, Bank of Canada Rate Decision

12/7 NZ Food Prices, German CPI, EU Industrial Production, US Weekly Jobless Application, US CPI, US Monthly Budget Statement

13/7 China Trade Exports/Imports, Japan Industrial Production, University of Michigan Sentiment

Paul Bettany

Collinson & Co

0406-744-923