Daily Market Commentary 14th February 2023

A positive start to the weeks trading, with equity markets in Europe and the US, booking strong gains. A slow day for economic data releases allowed markets to focus on tonight’s important US CPI inflation number. Inflation is expected to continue to ease off from last years 8.4% highs and come in at just above 6%, annually. A miss either way will result in market consequences. The EU GDP growth rate will also come under the spotlight, which is also expected to shows strong signs of improvement. Last weeks creeping bond yields, in the US, will be under close scrutiny, following the US inflation reading. The rising rates have boosted the US Dollar, with the EUR trading around 1.0700, while the GBP holds above 1.2100.

Commodity currencies have stabilised, with the AUD trading around 0.6950, while the NZD looks to consolidate above 0.6300. Inflation and growth are key market determinants in the next days trade.