Collinsonfx Daily Market Commentary

US Veterans day holiday and Armistice Day meant there was a quiet open to the markets. The UK expected a plethora of economic data releases, ranging from GDP to trade numbers and all were upstaged by the announcement of Nigel Farage and the Brexit Party. Farage announced that he would not contest in the Conservative held electorates, citing the interests of Brexit and the Country. This lead to an immediate spike in the Tories electoral chances and the GBP. The GBP jumped back to 1.2850, while the EUR traded 1.1030, mired in torment.

US equity recovered early losses after Boeing shares spikes, boosted by the announcement of a resumption in 737 aeroplane sales. Trump had dampened enthusiasm over the US/China trade deal, walking away from confirming the removal of trade tariffs, as previously announced by Chinese officials. The NZD also jumped back to 0.6350, after last weeks sell-off, in the lead up to the RBNZ OCR announcement. This implies that the RBNZ will resist the temptations for further rate cuts, in line with the RBA and Bank of England? We shall see.

The US/China trade deal remains the macro driver of markets although Central bank speculation is important to respective currencies.