Collinson Forex Daily Market Commenary

Daily Market Commentary

US equity markets continued to explore new territory, operating at record highs in the Dow and S&P, continuing from last week's rally. There is a dearth of economic data to begin the week but that will all change today when the Bank of Japan kicks off a new cycle of interest rate decisions. They are expected to leave rates unchanged, but markets are watching closely at the commentary, especially as the Yen has been in sharp decline in recent times. The Yen has been heading back towards 150.00, where intervention has been triggered previously, while the BoJ has been increasingly dovish. Key to the Central Banks is the resurgence of inflation, which is also closely monitored, especially Fridays PCE release, in the USA. The EUR is looking to regain 1.0900, while the GBP has crept back up to trade 1.2700.

Commodity currencies have rebounded from recent lows, but still remain under pressure, as recessionary conditions in Europe have dampened global commodity demand. The AUD has been sliding back towards 0.6550, while the NZD dipped below 0.6100. All eyes turn to the Bank of Japan in this mornings trade.

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

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