Collison Forex Weekly Market Commentary

Weekly Market Commentary

Markets closed lower Friday, to close out a week of losses, on equity markets. The sanctions imposed on Russia are impacting global markets hard. The repercussions of a Russian response to sanctions could be crippling for Europe, as they have a heavy dependency on Russian energy and agriculture. This will drive already rampant inflation even higher. US CPI came in at 7.9%, a new record high, for the last forty years. This can only deteriorate further. The EUR has fallen to 1.0900, while the GBP has slipped to 1.3035, ahead of  the Bank of England Rate Decision this coming week.
 
Commodity currencies have suffered once again, with the AUD falling below 0.7300, while the NZD below 0.6800. The Fed meets this coming week and they have indicated they will raise rates by 25 basis points. A failure to act will stimulate equities but further antagonise spiralling inflation. The Bank of Japan will also announce their latest rate decision, but their inflation issues are nowhere near as pressing

Weekly Market Calendar

14/3 France Trade Exports/Imports Current Account
 
15/3 US Inflation, UK GDP, NZ Services PMI, RBA minutes, Australia House Prices/New Home Sales, China Industrial Production/Employment, German Wholesale Prices, UK Employment, France CPI, German/EU ZEW Economic Sentiment, EU industrial Production, US PPI
 
16/3 NZ Global Dairy Prices, NZ Current Account, Japan Tankan Report, Japan Trade Exports/Imports, China House Price Index, Japan Industrial Production, US Weekly Mortgage Applications, US Retail Sales
 
17/3 NAHB House Market Index, FOMC Rate Decision, NZ GDP, Australia Employment, EU New Car Registrations, EU CPI, Bank of England Rate Decision, US Building Permits, US Weekly Jobless Claims, US Housing Starts, Philly Fed Report
 
18/3 US Manufacturing/Industrial Production, Japan CPI, Bank of Japan Rate Decision, US Existing Home Sales

PLEASE NOTE THE VIEWS EXPRESSED IN THIS COMMENTARY ARE THOSE OF THE AUTHOR AND NOT COLLINSON & CO 

Paul Bettany

Collinson Forex

Collinson & Co

Mobile 0406-744-923

paul@collinsonfx.com