Daily Market Commentary 12th October 2021

Columbus Day in the US allowed for a long weekend for many and reduced trading on markets. The shock miss on Friday’s Non-Farm Payrolls number still haunted markets, while in Europe, the ECB considers ways to end pandemic related monetary and fiscal support. This did not assist the EUR, which trades 1.1550, while the Yen lost further ground to 113.30.

The US holiday allowed the shock of the NFP’s number to be digested. The only plus for this number, is that it gives the Fed an excuse to delay further ‘tapering’ to the monetary stimulus (if you could possibly call that a positive!?). Local markets will focus on the South Korean Central Bank rate decision and Australian Business Confidence. The commodity currencies continue to benefit the demand pull on commodities, with the AUD looking to consolidate above 0.7350, while the NZD holds above 0.6900.

Inflation and growth globally dominate the macro narrative.