Daily Market Commentary 17th November

Global equity markets rallied strongly after further promising news regarding a vaccine. Moderna confirmed that their vaccine had a 94%+ effective rate and could be stored at lower temperatures. This was great news for markets and equities rallied, while the safe haven Dollar, lost further ground. Risk appetite is climbing with economic sentiment. The EUR rallied to 1.1830, while the GBP pushed up towards 1.3200, despite no final post-Brexit trade agreement. The trade agreement is well overdue and news is expected this week.

Chinese Industrial Production, Retail Sales and Employment all showed positive signs. The Japanese GDP spiked upwards and Industrial Production jumped 3.9%. The improved market confidence and the flagging reserve, saw the AUD bounce above 0.7300, while the NZD fast approaches 0.6900. These trade exposed commodity currencies are enjoying the surge in markets confidence but remain extremely vulnerable to global events.

Look for the EU/UK trade news, virus/vaccine and political developments in the US to drive markets over the coming few days.