US equity markets corrected Friday, coming off record highs, following the Fed’s decision to cut rates. The run stemmed from the continued swap out of the tech heavy NASDAQ, as AI questions remain unanswered. UK GDP growth contracted in October, raising questions over the health of the UK economy, prompting technical recession theories. The GBP slumped back to 1.3370, while the EUR continued to trade around 1.1740.
The kiwi consolidated recent gains, trading around 0.5800, while the AUD slipped back to 0.6650. This coming week will be dominated by US labour market data, with the Non-Farm Payroll number, finally being released. This number, combined with a reading on US inflation, will dominate the narrative of the trading week. Elsewhere, the focus will be on interest rate decisions from the Bank of England, the ECB and the Bank of Japan.
