The OECD made a massive revision of its global growth forecasts upwards. The roll-out of the vaccine and the fiscal/monetary stimulus, allowed the OECD to revise global growth forecasts steeply upwards, to over 5% for 2021. This was reassurance for markets and equities surged, while Bond Yields drifted off, from recent highs. The economic revisions followed disappointing Q4 GDP growth numbers from both Europe and Japan. German Trade was depressed, as exports flattened out and imports dipped sharply. US equities surged, led by Tech shares, which have been hit hard by the recent share market correction. The EUR rebounded to 1.1880, while the GBP looks to regain 1.3900, both boosted by renewed economic hopes.
The trade exposed commodity currencies have been major victims of the rally in bond yields and the rising reserve, but they stabilised overnight. The NZD regained 0.7150, while the AUD settled around 0.7700, boosted by stronger than expected Business Confidence data. The vaccine roll-out and growth prospects are a strong narrative for markets, although danger remains and this will be reflected in the rise in interest rates.