|US markets have been on a tear, in a ‘V-shaped’ recovery in equity markets, despite suffering massive losses on Thursday. The strong bull run was interrupted with profit taking, but the recovery resumed Friday, to close out the tumultuous week. The Dollar rebounded forcing the EUR back to 1.1250, while the GBP crashed to 1.2540, following some shocking economic statistic releases. UK GDP suffered enormous contractions, while Trade, Industrial and Manufacturing Production, all suffered severe losses due to the economy shut-down.
The economic recovery is underway and assisting the trade exposed commodity currencies. The huge risk-off moves smashed the currencies Thursday, but stabilised to close out the week. The AUD settled around 0.6850, while the NZD traded 0.6440, relying heavily on the mood of the reserve currency.
Global economic data remains challenging but improving from historical lows. The vulnerabilities remain, with virus threats and trade concerns surrounding China. It is likely to be a huge week coming up, with big data releases and risk appetite tested.