Global equities bounced back from last weeks losses, with positive sentiment now towards the new US $1.9 Trillion bail-out package. The US Dollar beat a retreat, as the EUR jumped to 1.2120, while the GBP broke back above 1.3620. German CPI came in negative for the year, the contraction accurately reflecting the 2020 growth in the economy. The incoming US administration has nominated Janet Yellen for her second stint as head of the Federal Reserve. In her testimony she has advocated for the Government ‘act big’ on fiscal stimulus, while rates remain at record lows. The stimulus is enormous and follows other major packages through out the previous year. This will be a massive cash explosion of pork, with only a small proportion going to the people that desperately need the assistance.
Commodity currencies stabilized with the weaker reserve, as the AUD looked to regain 0.7700, while the NZD broke back above 0.7100. The important NZ Business Confidence number was negative, but a substantial improvement from the recent record lows, while Global Dairy prices firmed. Market attention will be focused on tonight’s inauguration in the heavily militarized Washington, DC.