Collinson Forex Daily Market Commentary

Daily Market Commentary

The recovery rally on Wall Street, to close out last weeks trade, continued across global equity markets to open the new week. The S&P had previously moved into 'Bear Market' territory on Friday, but the relief rally has ended that black mark, at least for now. German IFO Business Climate was positive and market sentiment improved, momentarily. The ECB President LeGarde confirmed the end of QE and interest rate rises were coming in Q3, which is very late to the inflation party. Inflation is obliterating the European economies and needed to be addressed many moons ago. The sanctions Europe and the USA have imposed on Russia have had an extremely negative impact, as Russia is a resource superpower and a major supplier of European food and energy. The rise in sentiment allowed the decline in the safety of the US Dollar, with the EUR rising to 1.0700, while the GBP bounced above 1.2550.

Commodity currencies were also beneficiaries of a weaker reserve, with the NZD bouncing above 0.6450, while the AUD looked to regain 0.7100. The Australian Federal Election saw a change of Government, to the left's Labour Party, but clear policy direction was not a key point of the election platform. The Cabinet is yet to be selected, as this is done by the 'Collective' within the Party factions, rather than the PM. Albanese was sworn is as PM and promptly hopped a plane to share his new-found success with the world. The Greens and Independent 'Teal Greens' did very well in the election, so we can expect this to be a major platform for the incoming Government, as they exact their pound of flesh.

Look for some flash PMI data releases around the world, lead by Australia and Japan, to set market direction.

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