Daily Commentary 30/05/2016

Yellen confirmed that it would ‘probably be appropriate’ to raise interest rates in the near future with a proviso! The Fed have always had a pre-condition to raising rates, the global economic recovery, which has failed all benchmarks. The world has missed a complete economic cycle, since the global recession, with more to come because of the global Central Bank monetary economic largesse. US GDP came in at 0.8, below expectations, historically disastrous levels. The Dollar did stage a recovery, as the EUR moved to 1.1110, while the JPY broke back to 110.30. The rise in the reserve was reflected in the commodity currencies, with the AUD falling below 0.7200, while the NZD tests 0.6700 to the downside. The coming week provides an avalanche of economic data which will probably provide cover for the Fed!

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