Daily Market Commentary 15th September 2020

EU Industrial Production improved 4.1%, but declined 7.7% for the year, but markets focused on the resumption of trials in the UK for the AstraZeneca’s trial for a vaccine. The UK trials were suspended last week, but resumed overnight, giving markets confidence as infection rates are on the rise. The positives injected further confidence into US equity markets, which resumed an upward march.

The USD settled with the positive sentiments, allowing the EUR to rally to 1.1850, while the GBP traded 1.2850. The GBP has taken a serious beating of late, as EU and UK trade negotiations have broken down, suggesting a no deal WTO trade rules will apply. They are fast running out of time and an impasse seems a likely outcome.

The flagging reserve allowed the trade exposed currencies to regain some lost ground, with the AUD trading 0.7280, while the NZD looks to regain 0.6700. These are volatile times and equities will continue to reflect this.