Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets were steady ahead of the Fed's final interest rate decision for the year. The Fed is expected to leave rates unchanged and market moves will hinge on the associated commentary, with the prospects of rate cuts in 2024. US PPI data was weaker than expected, following improving inflation CPI numbers, released yesterday. This will 'green-light' the Fed's dovish monetary policy. UK GDP for October was worse than expected, with further contractions, reflecting the dire straits the British economy is in. Industrial and Manufacturing production both continued to contract sharply, and this has resulted in a weaker Pound. The GBP slipped below 1.2500, while the EUR dipped below 1.0800, following a sharp contraction in their own Industrial Production.

The NZ Current Account was worse than expected for Q3, coming in at NZ$11.46 Billion, or over NZ$30 Billion annualised. This has got to be addressed by the new Government and remains are serious concern. The NZD slipped back below 0.6100, while the AUD trades above 0.6550. All eyes are on the Federal Reserve.

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

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