Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets opened the trading week quietly, as is the trend lately, with no major data releases scheduled. The major points of interest in the coming week will be inflation and growth data from Europe and the USA. Chinese inflation numbers were released and showed signs of life, but barely, coming in at an annualised 0.3%. Chinese economic data has been strong. of late. and has been a boon to commodity prices. European inflation data, is expected to remain weak, the prospects of interest rate cuts in the coming month or so. US inflation has been going in the opposite direction, so any further upward momentum on Wednesday. could see some spikes in bond yields and hurt equity markets. The US Dollar was steady ahead of inflation readings, so the EUR traded around 1.0750, while the GBP held 1.2550.

Commodity currencies struggled to hold onto recent gains, with the AUD dipping below 0.6600, while the NZD struggles to hold 0.6000. NZ PSI and PCI numbers were steady, in not unforgettable, while local markets await offshore direction. All eyes are on inflation and GDP growth data.

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

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