Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets stabilised overnight, following heavy losses on equity markets the previous day, while uncertainty prevails. The Geo-Political uncertainty remains, but US Q2 GDP data jumped to 2.8%, much stronger growth than expected. The economic good news has been hard to find recently, so this was a boost to market confidence, although markets remain nervous. The important PCE inflation indicator will be released tonight and is expected to show further declines, which would work to encourage equity markets. The US Dollar remain bid, with the EUR trading 1.0840, while the GBP slipped to 1.2860.

Commodity prices have been weak and the stronger reserve has only added to the woes of the associated currencies. The AUD crashed to 0.6520, while the NZD surrendered 0.5900. The weaker than expected Chinese economic performance has led to the sharp falls in these commodity dependent currencies. All eyes now turn to US inflation data.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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