Daily Market Commentary 23rd April 2024

European and US equity markets rebounded strongly, as confidence flooded back into markets, following the calming of the situation in the Middles East. The heavy losses suffered over the previous week (or more), was in part due to the threat of the expanding conflict in the Middle East and the tit-for-tat, that now appears to be over. Markets will now be more focused on economic data and Central Bank actions. The US markets are awaiting key GDP growth numbers and PCE Inflation figures, out later this week. The GBP slipped back to 1.2300, amidst speculation that the Bank of England may cut interest rates sooner, rather than later. The EUR was steady, trading around 1.0650, and may be looking for a recovery in flash PMI numbers out tonight.

Commodity currencies remain under pressure but did consolidate after recent losses, with the AUD bouncing off 0.6400, while the NZD looks to regain 0.5900. The big number for Australia this week is the Q1 inflation data, set to be released Wednesday, giving some insight as to how the RBA is travelling in terms of interest rate cuts.