Weekly Market Commentary
The week closed on a positive note, with Non Farm Payrolls beating expectations, while the 'Brexit Divorce' progressed. The. EU and the U.K. agreed the first step on Brexit, clearing the way for trade negotiations to proceed, although details were withheld. This was expected, while the news from the US regarding Employment, was positive leading in to next weeks FOMC rate decision. This boosted the Dollar, with the Yen moving up to 113.50, while the EUR drifted to 1.1750. Commodity currencies felt the wrath of the rising reserve, with the AUD testing 0.7500 on the downside, while the NZD drifted to 0.6840. The coming week will be headlined by important Central Bank interest rate decisions. The Federal Reserve will lead out with a rate rise, who along with the U.K., are ahead of the curve. The ECB will likely leave rates unchanged, despite improving growth prospects, allowing QE to continue. Central Bank action and speculation will drive this weeks currency markets.
Weekly Market Calendar
11/12 NZ Credit Card Spending
12/12 Australia Consumer Confidence, Australia House Prices, UK CPI, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism
13/12 Australia Consumer Confidence, German CPI, UK Employment, EU Industrial Production, EU Employment, US Weekly Mortgage Applications, US CPI, FOMC Meeting
14/12 Australia Inflation report, Australia Employment, China Retail Sales, China Industrial Production, France/German/EU Manufacturing/Services/Composite PMI, Bank of England Rate Decision, ECB Rate Decision, US Weekly Jobless Claims, US Trade Exports/Imports, US Retail Sales
15/12 Tankan Report, EU Trade, US Manufacturing/Industrial Production
Paul Bettany
paul@collinsonfx.com
Collinson & Co
0406-744-923