May Day went by on a positive note, with markets shrugging off the sharp contraction in US GDP growth, attributing this to an abnormally high jump in imports and cuts in Government expenditure. The tariff imposition caused a massive jump in imports to avoid the Trump tariffs, skewing the US GDP numbers, also impacted by the severe re-configuration of the Government under DOGE. Markets digested this and the positive developments on the trade negotiations front, to turn positive into the trading month of May. Equities continued to recover and bond yields fell. The US Dollar recovery continued, with the EUR falling back below 1.1300, while the GBP slumped to 1.3250.
The resurgent reserve hit the commodity currencies, with the NZD falling below 0.5900, while the AUD crashed back to 0.6350. The Bank of Japan looks to have completed their rare flutter with interest rate rises, holding rates at 0.50%, calming Asian markets. The Australian trade surplus exploded, as exports jumped more than 7%, although the currency appears to be the major factor. Al eyes now turn to the all-important US Non-Farm Payrolls data, set to be released Friday.
28/4 UK Manufacturing Production, Dallas Fed Manufacturing Index
29/4 German Consumer Confidence, EU Consumer Confidence, US Trade Exports/Imports, S&P Case-Shiller Home Price Index, Jolts Job Openings
30/4 Japan Industrial Production, NZ Business Confidence, Australia CPI, China Manufacturing/Non-Manufacturing PMI, Japan House Starts, Germany GDP, German Retail Sales, France CPI, France GDP, German Employment, EU GDP, German CPI, ADP Jobs Report, Canada GDP, US GDP, PCE Inflation Report, US Pending Homes Sales
1/5 May Day, NZ Consumer Confidence, Australia/Japan Manufacturing PMI, Australia Trade Exports/Imports, Bank of Japan IRD, Japan Consumer Confidence, Challenger Jobs Report, US Weekly Jobless Claims, US Manufacturing PMI, US ISM Manufacturing PMI
2/5 NZ Building Permits, Japan Employment, Australia PPI, Australia Retail Sales, EU CPI, US Non-Farm Payrolls, US Employment
Paul Bettany I Collinson Forex Limited Collinson & Co.
Private Banking I Mobile +64 0406-744-923
Countries: NZ 0800 338 838 I AU 1800 143 415 I UK 0800 028 5834 I US 1888 625 7833