Daily Market Commentary
A fiery and volatile end to a week of turbulent trading. The Middle East appeared to be on the verge of eruption and then receded to calm. An attack on Iran, as a possible response to the Iranian attack on Israel, hit Friday. This was enough to enough to unsettle markets and markets went haywire, before calming, as the response appeared measured and may signal the end of the Iran/Israel escalation. This weekend will be tense and further escalation will only bring further disruption to markets this coming week. Inflation and growth will be in the spotlight this coming week, with GDP numbers coming out in the US, along with important PCE Inflation data. Australia will also release their latest CPI data, which is expected to show big falls, in headline inflation. The US Dollar remains bid, with the EUR trading 1.0650, while the GBP remains under pressure around 1.2370.
Commodity currencies suffered the Geo-Political crises emanating from the Middle East, with the AUD crashing to 0.6360 at one stage, while the NZD fell back to 0.5860. The Bank of Japan will meet, this coming week, to decide interest rates. The BoJ are expected to hold rates at zero, but there may be some action, as the Yen is trading at intervention levels around 154.50. The crises in the Middle East is set to dominate another weeks trade on global markets. Keep an eye on Oil, Gold and the US Dollar.
Weekly Market Calendar
22/4 NZ Credit Card Spending, France Consumer Confidence, Chicago Fed National Activity Index, Canada PPI
23/4 EU Consumer Confidence, Australia/Japan/India flash Services/Manufacturing/Composite PMI, UK/France/Germany/EU flash Services/Manufacturing/Composite PMI, US Building Permits, US flash Services/Manufacturing/Composite PMI
24/4 US New Home Sales, Richmond Fed Manufacturing Index, NZ Trade Exports/Imports, Australia CPI, German Ifo Business Confidence, US Weekly Mortgage Applications, US Durable Goods Orders
25/4 ANZAC DAY, German Consumer Confidence, France Business Confidence, US GDP, US Weekly Jobless Claims
26/4 US Pending Home Sales, Kansas City Fed Manufacturing Index, NZ Consumer Confidence, UK Consumer Confidence, Tokyo CPI, Australia PPI, Bank of Japan Rate Decision, France Consumer Confidence, Russia IRD, US PCE Inflation Indicator, University of Michigan Economic Sentiment
PLEASE NOTE THE VIEWS EXPRESSED IN THIS COMMENTARY ARE THOSE OF THE AUTHOR AND NOT COLLINSON & CO
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