Collinson Forex Daily Market Commentary and Weekly Calendar

Daily Market Commentary

Gloomy economic conditions have failed to dampen enthusiasm in equity markets, with the tech-heavy NASDAQ closing at all-time record highs. Inflation is on the way down, with the EU latest headline number falling from 2.8% to 2.6%, encouraging rate cuts in the coming months from the ECB. The recessionary economic condition in the European economic zone begs for stimulus and demands cuts to interest rates. The latest PMI Manufacturing Data from Europe confirms that the industrial sector remains in full blown contraction mode, but lower interest rates are not the only solution. The heart of the industrial and manufacturing crises is energy, and the high cost is de-industrialising Europe. The US Dollar relented somewhat at the close of trade Friday, with the EUR bouncing to 1.0830, while the GBP regained 1.2650.

The softer reserve has allowed for some recovery in the commodity currencies, with the AUD breaking back above 0.6500, while the NZD looks to regain 0.6100. The coming week has a wealth of global economic data, with measures of growth and inflation. The US will be firmly focused on the labour markets and their impact on inflation. The US releases a series of important jobs reports, including Jolts, Challenger, ADP and culminating with the all-important Non-Farm Payrolls on Friday.

Weekly Market Calendar

4/3 NZ Terms of Trade Export/Import Prices, Australian Inflation Gauge/Building Permits/Job Ads
 
5/3 Australia/Japan/China Services/Composite PMI, Tokyo CPI, China People's Congress, Australia Current Account, France Industrial Production, UK/France/German/EU Services/Composite PMI, Italy GDP, EU PPI
 
6/3 Canada/US Services/Composite PMI, NZ Dairy Prices, ISM Services PMI, US Factory Orders/Total Vehicle Sales, China National People's Congress, Australia GDP, German Trade Exports/Imports, EU Retail Sales, US Weekly Mortgage Applications, ADP Jobs Report
 
7/3 Bank of Canada/Central Bank of Poland Interest Rate Decisions, Jolts Jobs Report, Fed's Beige Book, NZ Manufacturing Sales, Australia Trade Exports/Imports, China Trade Exports/Imports, German Factory Orders, Challenger Jobs Reports, ECB Rate Decision, Canada/US Trade Exports/Imports
 
8/3 Fed Chairman Testimony, Japan Current Account, China National People's Congress, German Industrial Production/PPI, France Trade Exports/Imports, EU GDP, US Non-Farm Payrolls, US Employment, China CPI/PPI

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

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