Collinson Forex Daily Market Commentary

Daily Market Commentary

Negative sentiment spread from Asian markets across Europe and the US. Chinese trade numbers revealed much weaker export and import numbers, from China and their problems remain. Oil prices slumped from recent highs, that were driven by the escalating war in the Middle East, as demand softens. French CPI data confirmed the recessionary economic conditions continue to weave their spell. Inflation fell to 1.4%, but now the focus turns to growth and demand. The important ZEW Economic Sentiment report. confirmed that Germany. remains in a dire economic space. The US Dollar continues to run hot, with the EUR slipping below 1.0900, while the GBP drifted to 1.3050, despite some improved employment data.

The firm reserve kept downward pressure on the commodity currencies, with the AUD testing 0.6700, to the downside, while the NZD trades below 0.6100. Global economic demand remains weak, not benefitting commodity prices, or the associated currencies. Attention now turns to the ECB, whether they cut rates further to stimulate recessionary economic conditions, while local markets will eye Australian employment data.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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