Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets rebounded in a recovery rally, to open the new trading week, following heavy losses suffered on equity markets the previous week. Fears over the flagging US and European economies, triggered the negative sentiment, following weaker than expected US labour market reports. The Non-Farm Payroll number missed expectations and raised further doubts about the state of the US economy. Markets will be heavily focused on the economic data this coming week and especially the US inflation data. Expectations are high, for a Fed rate cut, and it is important these inflation measures are conducive to that. The US Dollar remained strong, with the EUR drifting to 1.1040, while the GBP slipped to 1.3070.

The strong reserve kept the commodity currencies depressed, with the AUD falling to 0.6650, while the NZD weakened to 0.6130. Trade and economic growth will be monitored closely for signs of growth, while inflation will be informative for Central Banks. The ECB will likely cut later in the week.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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