Collinson Weekly Market Commentary and Calendar

Weekly Market Commentary

Markets closed lower Friday, despite an advantageous Non-Farm Payrolls number. Non-Farm Payrolls come in at 209,000 jobs added, lower than expectations and much lower than the ADP Private Sector report (497,000). The number was a relief to markets and equities turned positive following the release, but upon digestion and consideration, markets tanked into the close. US Bond Yields jumped even higher, with the 10-year consolidating above 4%. Market expectations are for further rate rises to come, and tough economic conditions to prevail, until pressures in US labour markets ease. Despite the rising yields the US Dollar was softer, allowing the EUR to leap above 1.0950, while the GBP cruised above 1.2800.
 
The softer reserve allowed the commodity currencies to recover ground, with the NZD heading back to 0.6200, while the AUD looks to regain 0.6700. The coming week will focus on inflation, across Europe and in the United States. Inflation levels are expected to continue to dramatically fall and any signs of static, or rises, will be met with sharp market adjustments. The RBNZ and the Bank of Canada, both meet for a revision of their respective monetary policies, with the RBNZ expected to hit the 'pause button', while BoC is expected to raise by 25 basis points. Inflation, interest rates and recessionary pressures are the focus of current markets, with a slew of economic data due to be released this coming week.

Weekly Market Calendar

10/7 Japan Current Account, Australia Building Permits, China CPI/PPI, Denmark/Norway CPI
 
11/7 NZ Credit Card Spending, Australia Consumer Confidence, Australia Business Confidence, Netherlands CPI, German CPI, UK Employment, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism
 
12/7 Japan PPI, RBNZ Rate Decision, US Weekly Mortgage Applications, US CPI
 
13/7 Bank of Canada Rate Decision, Fed's Beige Book, NZ Business PMI, NZ Food Inflation, EU Meeting, EU/Japan Summit, China   Trade Exports/Imports, UK GDP, UK Industrial/Manufacturing Production, France CPI, EU Industrial Production, EU Economic Forecasts, ECB Monetary Policy Accounts, US PPI, US Weekly Jobless Claims
 
14/7 EU Economic Finance Ministers Meeting, Japan Industrial Production, Finland/Sweden CPI, EU Trade, University of Michigan Economic Sentiment

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

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