Daily Market Commentary 31st May 2021

US Markets closed out the week and month on a positive note, as they head into the long US Memorial Day weekend. It has been a relatively quiet week of data releases and activity, which should all change next week. There will be a plethora of economic data releases in the coming week, culminating in the all important Non Farm Payrolls. There will be high hope of an improvement on the shocking April report. Markets will closely watch GDP growth, inflation and Manufacturing data leading up to the US employment numbers.

The EUR still trades below 1.2200, following the ECB doubling down on their QE infinity monetary policy. In stark contrast the Bank of England set out a firm strategy to raise rates into 2022, following the RBNZ lead in the last week. This boosted the GBP to 1.4190, while the NZD flirted with 0.7300, only to fall back to 0.7240 to close the week out. The AUD will open the week desperately holding on to 0.7700 and markets will be looking for a new monetary policy strategy in their meeting, this coming week.