Daily Market Commentary 30th July 2024

European markets will be focused on GDP growth and inflation in the coming week. First up to the plate are Sweden, Belgium and Ireland and all three of their respective Q2 GDP growth numbers, were weak. Sweden looks to be heading back into a technical recession, while Belgium and Irish growth is extremely weak. The economic circumstances across Europe remain dire, due to elevated energy costs and destructive deficit and debt, although it has dampened inflationary pressures. Markets will continue to consume growth and inflation data from Europe, while focusing on key Central Bank rate decisions later in the week. The Bank of England may begin to cut interest rates, while the Fed will be at least signalling rate cuts. in the very near future. The US Dollar remains bid, with the EUR drifting back to 1.0820, while the GBP traded 1.2850.

The stronger reserve and weaker commodity prices continue to pummel the associated currencies. The NZD has crashed to 0.5860, while the AUD fell to 0.6530. These currencies have been under extended pressure and are steadily losing ground. Market uncertainty is causing volatility, while all the undermining demand issue are at the heart of their problems.