Daily Market Commentary 24th September 2024

Markets are still bathing in the Fed’s 50 basis point rate cut and equity markets continue to enjoy record highs. The focus will turn to economic growth in the US, as many are hoping to avoid a recession and have a soft landing. The US Presidential election will also dominate the economic cycle, as it fast approaches and the consequences will be dramatic. PMI data, out of Europe, was weaker than expected. This confirms the recessionary conditions, especially in Germany, which looks to remain for an extended period. The EUR slipped lower, to trade 1.1120, while the GBP pushed up towards 1.3350.

Commodity currencies enjoyed a weaker reserve, with the NZD breaking above 0.6250, while the AUD heads back towards 0.6900. The RBA announce their latest interest rate decision today and expectations are for a continued and steady hold, as inflation persists.