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Daily Market Commentary 10th June 2021

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World Bank reviewed their global growth forecasts up to 5.6% p.a., from 4%, but warned growth levels remained far below pre-pandemic levels. Markets keenly await the US CPI number, out tonight, which is forecast to be a frightening 4.7%. This follows the shocking high of 4.2%, last month, which is the number global Central Banks fear most! The CPI number reflects the impact of the record breaking QE infinity and this is a number that fails to include many significant components in their reading.

German Trade numbers missed expectations, with only a slight improvement in exports, while imports contracted 1.7%. The EUR held steady as the Dollar remains in a pre-CPI flux, with the EUR trading 1.2180, while the GBP drifted to 1.4115. US Job openings increased to 9.3 million reflecting the tighter labour market and a Government corrupted employment problem. Incentives to not work remain, in many parts of the US economy, with welfare becoming a way of life.

Commodity currencies continued to weaken, with the AUD trading 0.7735, while the NZD fell back to 0.7170. NZ Business Confidence contracted 0.4%, while Australian Building Permits fell 8.8%. Chinese CPI increased only 1.3%, but significantly, PPI exploded with a jump of 9.1%. All eyes are now focused on US inflation data released tonight.

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