Weekly Market Commentary
The Dow resumed the bull run with the prospect of tax reform looming. The Senate passed the budget which now allows the tax reform legislation to pass under reconciliation. This is a 'must' for markets. Europe is being underwhelmed by the latest EU summit, which throws spanners in the form of Brexit and the Catalan Independence question. The EUR held below 1.1800, while the GBP inched back towards 1.3200, shrugging off the negatives. The coming week holds prospects of Central Bank activity and speculation with both the ECB and the Bank of Canada deciding rates. There is little chance of action but the language is likely to be bullish. Australian CPI is released and will probably be fairly static, while the AUD will kick off the week trading lower around 0.7800, while the wounded KIWI looks vulnerable. The new NZ Labour Government led 'Grand Rainbow Coalition' should encourage few and drive the NZD lower. The KIWI has fallen below the bog figure of 0.7000 and the only positive is that it may get oversold?!
Weekly Market Calendar
23/10 EU Debt/GDP, Bundesbank Report, Chicago Fed National Activity Report, EU Cosumer Confidence
24/10 Australia Consumer Confidence, France/German/EU Manufacturing/Services/Composite PMI, US Manufacturing/Services/Composite PMI, Richmond Fed Manufacturing Index
25/10 Australia CPI, UK GDP, US Weekly Mortgage Applications, US Durable Goods Orders, US House Price Index, Bank of Canada Rate Decision, US New Home Sales
26/10 NZ Trade Exports/Imports, German Consumer Confidence, ECB Rate Decision, Weekly Jobless Claims, US Trade, US Pending Home Sales
27/10 Japan CPI, German Retail Sales, US GDP, University of Michigan Confidence
Kind Regards
Paul Bettany
paul@collinsonfx.com
Collinson & Co
0406-744-923