Daily Market Commentary 18th November 2020

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The ‘Vaccine Rally’ ran out of steam overnight, after reaching historically record levels, on US Stock Markets. The post-US election rally was sparked by the announcement of vaccine effectivity rates and now investors are taking profit. US Retail Sales missed expectations, only increasing by 0.3%, which was also a drag on market sentiment. The safe-haven US Dollar continued to decline, with the EUR rising to 1.1870, while the GBP jumped to 1.3240. There are high hopes for a UK/EU Trade agreement in the next few days, which would be a boon to both currencies and economies.

The trade exposed commodity currencies drifted off highs, in line with market sentiment and global equity markets. The AUD dipped back below 0.7300, while the NZD drifted to 0.6880, despite better than expected global dairy prices. The spread of the virus continues to threaten European and US economies, as politicians implement harsher economic and social measures to contain the spread. Markets will await the post-Brexit trade deal and economic developments, while monitoring Central Bank actions and strategies.

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