Daily Commentary 03/06/2016

Equity markets were static overnight, as pundits await the Non-Farm Payrolls and Employment numbers from the US, tonight. This has growing influence, as the Fed continues to talk interest rate rises, in the coming month or so. The US GDP number was totally underwhelming and the Feds, Beige Book, purported moderate economic growth. They also pointed to a strong employment number, so the pressure remains on the NFP and Employment data, which will impact any telegraphed rate rise. The ADP Private sector jobs report was steady so any surprise would impact. The ECB left rates unchanged and forecast a rise in inflation, thus inferring economic growth, which has not occurred throughout this cycle. The EUR slipped back to 1.1150, on this news, while the GBP traded 1.4430. The UK and the currency are consumed by the brexit debate. The Yen rallied, despite a rising Dollar, pushing to below 109.00. This is a safety flow, but underlying threats of intervention from the BoJ, could be tested. The AUD gave up much of the previous day’s gains, falling to 0.7220, after falling Retail Sales contradicted GDP numbers. The NZD tested 0.6800, on the downside, hit by negative sentiment rather than any economic event. All eyes remain on the Non-Farm Payrolls in the US tonight.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s