Collinson Forex Daily Market Commentary

Daily Market Commentary

The Bank of China cut the 5-year mortgage rates, in an effort to ease pressures on the crises-ridden property sector, leading the way forward for Central Banks. The Governor of the Bank of England was also out and about promoting this years long-awaited interest rate cuts. The speculation is beginning to come to fruition. Canadian inflation tumbled lower than expected, falling from 3.4% to 2.9%, reassuring markets. US markets reopened, following the Presidents Day holiday, with a negative bias. Bond yields and equities drifted lower, while the US Dollar was also softer. The EUR jumped back above 1.0800, while the GBP regained 1.2600, despite the bearish commentary from the B of E. 

Commodity currencies sparked up, with the flagging reserve allowing the AUD to blow past 0.6550, while the NZD regained 0.6150. Central Bank actions and speculation now appear to the major market motivator.

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

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