Daily Market Commentary
Markets closed on a high Friday, with US equities pushing higher, boosted by market sentiment. There is growing confidence that the Fed has succeeded in orchestrating a 'soft-landing' for the economy, while manipulating monetary policy, through the inflation crises. This may be true, but threats remain a clear and present danger. There are Geo-Political threats that threaten energy and thus economies. The Middle East could be on the verge of a war blowing up and spreading, while the war in Europe continues. On the economic front, inflation has been conquered in Europe by recession and inflation measures from many European Countries will probably confirm that, this coming week. This will encourage the ECB to make a further rate cuts and attempt to stimulate heavy recessionary conditions, in much of Europe. The EUR recovered slightly, to trade 1.0940, while the GBP celebrated some positive economic data and rallied above 1.3050.
Commodity currencies stabilised after recent falls, with the NZD looking to regain 0.6100, while the AUD trades around 0.6750. The recent actions of the RBNZ, savagely slashing interest rates, will be justified with the latest inflation number to be released this coming week. The RBNZ Governor has been aware of the collapse in inflation, for some time, expected to confirm a fall from 3.3% to 2.3%. The oppressive monetary conditions, suffered by many, was endured for much longer than was necessary. The recession enabled by the Central Bank.
Weekly Market Calendar
14/10 US Columbus Day Holiday, China CPI/PPI, NZ Business PSI, NZ Credit Card Spending, China Trade Exports/Imports
15/10 Japan Industrial Production, France CPI, German/EU ZEW Economic Sentiment, EU Industrial Production, Canada CPI, Empire State Manufacturing Index, NZ CPI
16/10 UK CPI, Italy CPI, US Weekly Mortgage Applications
17/10 Australia Employment, EU CPI, ECB Monetary Policy Decision/Statement, US Weekly Jobless Claims, Philly Fed Manufacturing Index, US Retail Sales, US Industrial Production, NAHB House Market Index, Japan CPI
18/7 China GDP, China Industrial Production/Retail Sales, UK Retail Sales, EU Current Account, US Building Permits/Housing Starts
Paul Bettany I Collinson Forex Limited Collinson & Co.
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