Daily Market Commentary
The US Non-Farm Payroll number was stronger than expected, allowing further space for the Fed to leave interest rates unchanged. This follows the FOMC Minutes release, which revealed Fed members were in a 'sit and hold' mode, awaiting inflation readings and Trump trade policies. The new Trump Administration will be sworn in the 20th January and it will be a lot more than just tariffs that are revealed, Day 1. The Fed were never convincing in their rate cut cycle and this was reflected in the US Bond Markets. Bond Yields have been steadily rising, with the 10-Year yields topping 4.7%, last Friday. This has supported a strong US Dollar, with the EUR tumbling to 1.0220, while the GBP crashed to 1.2200.
Commodity currencies continue to suffer the strong reserve, with the AUD falling below 0.6150, while the NZD plunged to 0.5550. FX Currencies are experiencing multi-year lows, against the US Dollar, and it only promises to get worse. All will be revealed once the new US Administration is sworn in and begins to reveal policy.
Weekly Market Calendar
13/1 NZ Building Permits, Australian Inflation Report, Australia Job Ads, China Trade Exports/Imports, Japan Current Account, Japan Trade Exports/Imports
14/1 France Budget, NFIB Small Business Optimism, US PPI, NZ Business Confidence
15/1 German Wholesale Price Index, UK CPI/PPI, France CPI, Spain CPI, German GDP, EU Industrial Production, US Weekly Mortgage Applications, US CPI, Empire State Manufacturing Index, Fed's Biege Book
16/1 NZ Food Price Index, Japan PPI, Australia Inflation Gauge, Australia Employment, German CPI, UK Trade Exports/Imports, UK Industrial/Manufacturing Production, Italy CPI, EU Trade, US Weekly Jobless Claims, Philly Fed Report, US Retail Sales, NAHB House Market Index
17/1 China House Price Index, China GDP, China Industrial Production/Retail Sales, UK Retail Sales, EU Current Account, EU CPI
Paul Bettany I Collinson Forex Limited Collinson & Co.
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