Daily Market Commentary 25th June 2022

UK PM Boris Johnson suffered further political humiliation overnight, with heavy losses in two key By-Elections, followed by the resignation of the Conservative Party Chairman. BOZO is a dead-man walking, with the disastrous economic failures he has overseen, all the while war-mongering in the Ukraine (which is not even a British ally!). He has failed domestically and internationally, on a grand scale and the only thing that has saved him so far, is the lack of a viable alternative. European and US Equity Markets rallied strongly to close out a recovery week on markets, with the EUR pushing back to 1.0550, while the GBP traded 1.2270.

The G7 and NATO Summit’s begin in the coming week, which will be the perfect stage for extending support for the Ukraine and sanctions against Russia. These sanctions are crushing UK and European economies, by driving the food and energy crises’, but the ideological political leaders have no concept of this harsh reality. Inflation and recession are what Europe and the US have created and now the actual war, is being lost. Inflation and growth data, across Europe and the US, will be closely watched in the coming week. The Fed’s favourite inflation gauge, PCE, will be released mid-week.

Cost-of-Labour will add to the inflation spiral, with strikes across Europe, while the Australian Labour movement push for massive increases from their Political wing in the Labor Government. The AUD regained 0.6900, while the NZD pushed back to 0.6300, but remain extremely vulnerable.