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Daily Market Commentary 11th December 2023

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Non-Farm Payrolls beat expectations and US headline Unemployment fell to 3.7%, from 3.9%. The stronger than expected report was brushed off by markets but may be considered at next week’s interest rate decision from the Fed. This coming week will be highlighted by rate decisions from the FOMC, the Bank of England and the ECB. All are expected to leave rates unchanged for 2023, but the stronger than expected labour market report in the US, may lend to some hawkish (higher for longer) language. The NFP report pushed bond yields higher in the US and added some upside momentum to the US Dollar. The EUR slipped back to trade 1.0750, while the GBP drifted back to 1.2540.

The stronger reserve pushed the commodity currencies lower, with the AUD falling back to 0.6550, while the NZD headed back towards 0.6100. Markets will be focused on major Central Banks and inflation, this coming week, while speculating on the arrival of rate cuts in 2024. 

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