Collinson Forex Daily Market Commentary and Weekly Market Calendar

Daily Market Commentary

Has the 'Santa Claus' rally finally arrived on Wall Street, or is the surge on equity markets merely a partial recovery of markets following the post-Fed crash on Wednesday? US equities regained some lost ground, but US Bond Yields continued to rise, although the US Dollar was off its highs. The EUR stabilised and bounced off 1.0350, while the GDP floundered around 1.2500. The US PCE inflation indicator moved higher, confirming inflation is on the rise again, but within expectations. The 'Santa Claus' rally may extend over the next week or so, as many markets operate on a 'skeleton crew' basis, with all of the Christmas holidays and festivities.
 
The Japanese Yen bounced off recent lows, pushing off 158.00, as their inflation number came in hotter than expected. The Japanese CPI number jumped to 2.9%, perhaps forcing the Bank of Japan into action, raising rates and supporting the Yen. The Peoples Bank of China left rates unchanged, while Asian currencies all suffer around historical lows, as the US Dollar continues to prosper. The softer reserve allowed the commodity currencies to steady, with the AUD pushing back to 0.6250, while the NZD bounced off 0.5600. The dire economic conditions in many Western economies, threatens currency performance and continued deficit/debt spending ensures a gloomy future.

Weekly Market Commentary

23/12 German Import Price Index, UK Current Account/Q3 GDP, Spain GDP, Canada GDP, Chicago Fed National Activity Index, Bank of Japan Minutes
 
24/12 Christmas Eve, RBA Minutes, US Durable Goods Orders, US New Home Sales, Richmond Fed National Activity Index
 
25/12 Christmas Day
 
26/12 Boxing Day
 
27/12 Japan Home Sales, US Weekly Jobless Claims, Tokyo CPI, Japan Unemployment, Japan Industrial Production, US Trade

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