Daily Market Commentary
An anticlimactic close to a very politically volatile week, as election repercussions, permeate markets. UK and French snap elections, follow the European elections, which will see a significant shift away from incumbents. PMI data from Europe remain extremely challenging with deep contractions in Manufacturing. US and Asian PMI was also weaker, but not as dramatically so, as in Europe. Political uncertainty is causing nervous volatility in markets, despite US equity markets trading around record highs. Geo-Political developments have the potential to upend markets. The US Dollar closed out the week steady, with the EUR trading around 1.0700, while the GBP drifted back to 1.2640.
Commodity currencies are under pressure, with the NZD falling back to 0.6100, while the AUD regained some lost ground following the RBA IRD The AUD rose back to 0.6650, following the very hawkish commentary from the RBA, where they considered a further rate rise. This coming week will be focused on growth and inflation, with key readings in both Europe and the USA. Market attention will be firmly focused on the important US PCE inflation indicator, set to be released late in the coming week.
Weekly Market Commentary
17/6 NZ PSI/Composite PCI, Australia Job Ads, Australia Inflation Report, China House Price Index, China Industrial Production/Retail Sales/Employment
18/6 RBA IRD, EU CPI, EU/German ZEW Economic Sentiment, US Retail Sales. US Industrial Production/Manufacturing Production
19/6 NZ Dairy Prices, NZ Current Account. Tankan Report, Japan Trade Exports/Imports, UK CPI, EU Current Account
20/6 NAHB House Market Index, NZ Consumer Confidence, NZ GDP, German PPI, ECB Meeting, Bank of England IRD, US Weekly Mortgage Applications, US Building Permits/Housing Starts, US Weekly Jobless Claims, Philly Fed Manufacturing Index, US Current Account
21/6 Australia/Japan flash Services/Manufacturing/Composite PMI, Japan CPI, NZ Credit Card Spending. Japan Retail Sales, UK/France/German/EU flash Services/Manufacturing/Composite PMI, US existing Home Sales. US flash Services/Manufacturing/Composite PMI
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