Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets opened the trading week following a tumultuous few days on the Geo-Political stage. The French elections was a shoch result with the alliance between Macron and the left prevailed. LePen failed to grab the majority of seats the polls had predicted, due to the political strategy employed by the major opposition parties, who removed candidates in the three-party runoff. LePen won the most votes by far, 37% of the electorate, but came in third when the seats were distributed. This follows the landslide victory of the left in the UK, with less than 34% of the electorates vote. Democracy is a well manipulated form of Government. The US job market appears to be cooling, which is good for the Fed, when considering future rate cuts. Markets will continue to focus on Geo-Politics, but in the USA attention will turn to the inflation readings.  Released later in the week. The EUR drifted lower, falling back to 1.0800, while the GBP fell back to 1.2800.

The softer reserve allowed the AUD to fall bank towards 0.6720, while the NZD may test 0.6100 on the downside. The RBNZ meets this week and is expected to leave rates unchanged and maintain the hawkish attitude to inflation.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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