Collinson Forex Daily Market Commentary

Daily Market Commentary

European markets tanked overnight, following a major sell-off in US markets, following the long labour market holiday weekend. Europe and the US are facing major challenges in the manufacturing sector, which was confirmed in the latest round of PMI Manufacturing numbers, just released. In the US market focus has turned to the labour markets and employment. The latest Jolts Job Openings Report was weaker than expected, confirming labour markets are feeling the effects of recessionary pressures. The Bank of Canada has cut interest rates for the third consecutive time, as inflation rates tumble and the Central bank desperately attempts to stimulate tough recessionary conditions. The Fed is likely to follow suit in just a couple of weeks. The US Dollar was stable overnight, with the EUR pushing back to 1.1080, while the GBP regained 1.3100.

Australian GDP came in at 0.2% growth for Q2, for the third quarter in a row, while the annualised rate fell to just 1%. This was the weakest period of growth seen since the recession of the 1990's and on a per capita basis, is deeply negative. Immigration is the only thing holding this GDP growth number in positive territory. The NZD looked to regain 0.6200, while the AUD struggles to hold 0.6700. Markets are nervous and await key US labour market reports.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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