Collinson Forex - Weekly Market Commentary and Calendar

Weekly Market Commentary

US markets reversed the days market losses, despite the failure to reach an agreement at the high powered meeting between China and the US, in Washington. The US increased tariff rates, from 10% to 25% on $200 Billion of Chinese goods, in an effort to increase the pressure on the Chinese to  conclude the long negotiated trade agreement. The Chinese have been reticent to agree to the comprehensive package, while Trump has raised the pressure on them, with tariff rises and further tariffs to come. Trump tweeted that negotiations were 'candid and constructive' and that they will continue. This triggered a rally in equities, after early losses, both today and over the last few days.

UK GDP was steady, around 1.8% growth, while Industrial and Manufacturing Production was positive. The economic data continues to perform, despite the chaos surrounding the Brexit impasse, confounding pundits. The GBP trades around 1.3000, while the EUR held above 1.1225, with currencies avoiding the volatility experienced in equity markets. Commodity currencies are dependent on a positive outcome on global trade and growth. The AUD holds around the critical support level of 0.7000, while the NZD regained 0.6600, recovering after the RBNZ rate cut.

The coming week will be focused on global economic data releases, but developments in global trade wars, have the capacity to interrupt markets.