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Daily Market Commentary 30th June 2024

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US markets were closed for a holiday overnight, so action was limited. UK inflation came in at the target limit of 2%, in line with expectations. and welcome progress for the Bank of England ahead of tonight’s interest rate decision. The Bank of England is expected to hold rates, ahead of the National Election, but this does give the green light for interest rate cuts. The currency markets were steady with the US holiday, as the EUR traded 1.0730, while the GBP held around 1.2700.

The easy reserve allowed the AUD to firm above 0.6650, while the NZD fell back to 0.6130. The NZ Current Account deficit remains large, and this is an ongoing problem, which reflect long-term structural economic problems. The local markets will focus on NZ GDP, hoping that it will be positive enough, to move the Country out of a technical recession. The only reason it could be positive is record immigration, because the economy remains in a recession.

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