Collinson FX Weekly Market Commentary

Weekly Market Commentary

US Markets closed out the week and month on a positive note, as they head into the long US Memorial Day weekend. It has been a relatively quiet week of data releases and activity, which should all change next week. There will be a plethora of economic data releases in the coming week, culminating in the all important Non Farm Payrolls. There will be high hope of an improvement on the shocking April report. Markets will closely watch GDP growth, inflation and Manufacturing data leading up to the US employment numbers.
 
The EUR still trades below 1.2200, following the ECB doubling down on their QE infinity monetary policy. In stark contrast the Bank of England set out a firm strategy to raise rates into 2022, following the RBNZ lead in the last week. This boosted the GBP to 1.4190, while the NZD flirted with 0.7300, only to fall back to 0.7240 to close the week out. The AUD will open the week desperately holding on to 0.7700 and markets will be looking for a new monetary policy strategy in their meeting, this coming week.

Weekly Market Calendar

31/5 Memorial Day Holiday, Japan Industrial Production, Japan Retail Sales, China Manufacturing/Non-Manufacturing PMI, NZ Business Confidence, Japan Consumer Confidence, Japan Housing Starts, Japan Construction
 
1/6 German CPI, NZ Building Permits, Australia Manufacturing PMI, Australia CPI, Australia Building Permits, Australia Current Account, China Manufacturing PMI, RBA Meeting, UK House Prices, German Employment, UK/German/France/EU Manufacturing PMI, EU CPI, EU Employment
 
2/6 US Manufacturing PMI, US Construction, Dallas Fed Manufacturing Index, Global Dairy Price Index, NZ Trade Exports/Imports, US Total Vehicle Sales, Australia GDP, German Retail Sales, EU PPI, US Weekly Mortgage Applications
 
3/6 Biege Book, Australia Construction, Australia Services/Composite PMI, Australia Trade Exports/Imports, Japan Services/Composite PMI, China Services/Composite PMI, UK/France/German/EU Services/Composite PMI, Challenger Jobs Report
 
4/6 ADP Jobs Report, US Weekly Jobless Claims, US Services/Composite PMI, EU Construction, EU Retail Sales, Non Farm Payrolls, US Factory Orders