Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets were nervously trading sideways overnight, as equities tread ground, near record highs. US Bond Yields remain elevated, supporting a strong US Dollar, confirming the uncertainty in markets ahead of next weeks US Presidential Election. The EUR traded around 1.0800, while the GBP looked to regain 1.3000, ahead of the UK Labour Governments first budget tonight. Markets will focus on this fiscal plan for the future, as taxation is expected to increase, while social spending may be cut. The US Jolts report indicated the lowest Job Opening since January 2021, as the labour market cools.

The rise in bond yields in the US and the associated strong reserve have added further downward pressure to the commodity currencies. The AUD fell back to 0.6550, while the NZD drifted to trade 0.5960. Expect nervous and uncertain markets to prevail until the US Election and depending on the result, shortly afterward. Local markets await the Bank of Japan decision tomorrow.

Paul Bettany   I   Collinson Forex Limited    Collinson & Co.  

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