Daily Market Commentary 21st May 2024

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Markets opened the week quietly, as is the fashion these days, with a dearth of economic data releases scheduled for Mondays. Trade, growth and inflation numbers will begin to flow, and markets will be looking closely at growth and inflation. German PPI numbers will be released tonight and tomorrow will look closely at UK PPI and CPI, giving insight at to the future of rate cuts at the Bank of England. The ECB may be looking to begin rate cuts in the coming weeks, but the Fed is likely to wait until confirmation that inflation is defeated. The US Dollar was steady, with the EUR drifting back to 1.0860, while the GBP held 1.2700.

The AUD held above 0.6650, ahead of the release of the latest minutes from the last RBA meeting, while the NZD looked to hold 0.6100. The NZD may be subject to speculatory moves ahead of this week’s RBNZ interest rate decision, although no moves are expected, the narrative may influence markets.

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