The rally continues on global markets, as the Dow hit an all time record high, bolstered by the vaccine success-rate and the conclusion of the US elections. The vaccine success rate of over 90% will allow the global economy to re-open and now the chronology and logistics of the roll-out, comes into focus. The US Dollar has settled, after the surge in risk appetite, with the EUR trading 1.1810 and the GBP jumping to 1.3240. The focus in the UK is now firmly on the EU/UK trade deal, post-Brexit and hopes are rising it may be concluded anon. German and EU ZEW Economic Sentiment plunged, which was to be expected, following the surge in the virus and new lockdowns across Europe..
Commodity currencies banked gains from the softer reserve, with the NZD holding above 0.6800 and the AUD drifting to 0.7270. NZ Credit Card spending jumped 8.8%, supported by stronger house prices and a more settled political environment. The RBNZ will likely hold rates, as global markets seem to be improving, but may promise further monetary support in the form of expanded QE. Australian Business Confidence returned to positive territory, while external factors, continue to drive local markets.