Weekly Market Commentary
Markets rebounded to close a week of losses in equity markets. The Fed has indicated that they will begin the 'tapering' of QE by the end of the year, but the clarification settled markets, which was they may just taper and not raise interest rates. This allowed a bounce in equities Friday. The USD remains strong as a safe haven play, with the EUR below 1.1700, while the GBP attempts to hold 1.3600.
The virus and political, social and economic reactionary policies has driven sentiment lower and hit the demand led recovery narrative. NZ and Australia are now both suffering extreme lockdown restrictions, which will severely damage the economic recovery. Commodity prices are now being impacted and this is directly effecting the associated currencies. The NZD is trading just above 0.6800, while the AUD has been battered and trades 0.7135.
The virus, growth and inflation will be major market influencers in the coming week!
Weekly Market Calendar
16/8 NZ Services PMI, Japan GDP, China House Price Index/Industrial Production/Retail Sales, Japan Industrial Production, Empire State Manufacturing Index
17/8 RBA Minutes, UK Employment, EU GDP, US Retail Sales, IS Industrial/Manufacturing Production
18/8 NAHB House Market Index, NZ Global Dairy Prices, NZ PPI, Japan Trade Exports/Imports, Australia Leading Index, RBNZ Interest Rates Decision and Press Conference
19/8 RBA Minutes, UK CPI/PPI, EU CPI, US Weekly Mortgage Applications, US Building Permits/Housing Starts, FOMC Minutes, Australia Employment, EU Current Account, US Weekly Jobless Claims, Philly Fed Report
20/8 UK Consumer Confidence, Japan CPI, German PPI, UK Retail Sales