Daily Market Commentary 8th October

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

US equities roared back overnight, after losses sustained following the Presidential abandonment of stimulus talks with Congress, which may have been reinstated? Trump tweeted that he would act, after the election, to stimulate the economy. He abandoned talks with the House leader Pelosi, but lifted hopes during the trading day, with further messages, that he would consider individual Bills. The turmoil in equity markets was not reflected in the currency markets, with the EUR trading 1.1770, while the GBP held above 1.2900.

The initial hit, from big losses the previous trading session, to commodity currencies was severe. The AUD recovered back to 0.7130, absorbing the Keynesian Federal Busgwt, while the NZD rebounded to 0.6570. These trade exposed currencies remain severely exposed to volatility in markets and the last 24 hours is evidence of that. Market confidence is key and this will continue to fluctuate as the US election approaches.

Collinson & Co Contact