Collinsonfx Daily Market Commentary

US Equity markets rebounded, after a day of losses, supported by the growing confidence in a Fed rate cut following a string of weak economic data releases. A series of weak economic data numbers from, both Europe and the US, has crushed sentiment and allowed equities to fall, while bond yields drop and the USD loses ground. The EU has not been a bastion of economic growth and confidence, but the currency has gained some ground in the face of a sliding Dollar, with the EUR approaching 1.1000, while the GBP breaks back above 1.2300. The Brexit deadline approaches fast and a new proposal has emerged, which appears to be receiving consideration in Europe, although the ruling forces remain opposed to any UK exit.

Commodity currencies are showing signs of recovery, as US/China trade talks resume next week, with positive vibes emanating. Central Banks have all pledged to continue the currency wars, with further rate cuts, but the 'Big Dog' will now come into focus. US Economic data has turned south and the prospect of FOMC action continues to grow.  Commodity currencies continue to benefit the US/China trade prospects and Central Bank action. The AUD traded 0.6740, while the NZD surged to 0.6300, gaining from oversold status.

US/China trade negotiations and Central Bank actions will drive the market into the weekend and the coming week.