Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets continued to ebb and flow ahead of key Central Bank rate decisions. The Fed is expected to hold interest rates at elevated levels, for one last time, before beginning interest rate cuts in September. The Bank of England may begin the interest rate cutting cycle, this coming week, as inflation is seemingly on target. The latest reading in growth and inflation in Europe was in line with expectations. Growth across the Eurozone are beginning to show 'green-shoots', but this is from deeply recessionary territory. Spain was the exception, with a jump in GDP growth (+2.9% annualised), while Germany remains mired deep in a technical recession. German inflation jumped higher, to 2.3%, showing the once mighty 'engine-room' of Europe is  moving in the wrong direction. Market focus is firmly on the Fed and the Bank of England. The US Dollar remains strong, with the EUR struggling to hold 1.0800, while the GBP drifted to 1.2830 ahead of the Band of England IRD.

Commodity currencies were steady overnight, with the NZD looking to regain 0.5900, while the AUD trades 0.6530. Local markets will be focused on the Bank of Japan and Australian inflation data.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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