Collinson Forex Daily Market Commentary

Daily Market Commentary

Equity markets crashed overnight, with the US darling, the 'NASDAQ' suffering losses not seen since 2022. This follows massive accumulated gains in so called 'tech' stocks, on the back of AI. Flash PMI data across Asia, Europe and the US continues to weaken, as business activity struggles. Shares slumped and fears that this may spread to the Banking Sector was prevalent. The Bank of Canada cut interest rates, for the second time in succession, citing falling inflation and weaker GDP growth. Markets are still operating at elevated levels but with all the Geo-Political turmoil, it is no big surprise. The EUR fell back to 1.0850, while the GBP tested 1.2900, to the downside.

The stronger reserve continued to damage the commodity currencies, with the AUD stumbling below 0.6600, while the NZD is heading back towards 0.5900. Uncertainty is kryptonite to markets, although they still remain at elevated levels, but many have predicted a looming major correction.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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