Collinson Forex Daily Market Commentary

Daily Market Commentary

Chinese markets were disappointed with the Governments solution to the housing crises and dipped lower. The 'Housing Minister' announced 4 Trillion Yuan in assistance to the property sector, but failed to meet expectations and associated stocks slumped. The ECB cut rates by a further 25 basis points, in line with expectations, as EU inflation crashed to 1.7%. Inflation has been crushed by recession and now the Central Bank is looking to revive these depressed economies. US Retail Sales jumped higher than expected, adding 0.4%, boosting market confidence. Markets will be building in election speculation to market activity, as the big day fast approaches. The EUR fell to 1.0820, following the ECB announcement, while the GBP regained 1.3000.

Australian Employment numbers were better than expected, adding over 50,000 new full-time jobs, while the headline rate held 4.1%. This was enough to boost the AUD, which rallied back towards 0.6700, while the NZD looks to hold 0.6050. Local markets will look closely at Chinese GDP growth today, while the Japanese release the latest inflation number.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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