The fears sparked by the Fed’s tapering policy, was put behind and equity markets rebounded strongly overnight. Inflation and rising interest rates were placed firmly in the rear-view mirror, as markets rallied and commodity prices also saw some gains. The EUR regained 1.1900, while the GBP traded up to 1.3930, despite the lock-down restrictions.
The gains in commodity prices were headlined by the oil price, which spiked to over US $73/barrel. The softer reserve allowed the commodity currencies to also rebound, with the AUD bouncing to 0.7530, while the NZD looked to push back to 0.7000. Global economic data releases are quiet to start the week, but gain momentum as the week progresses, highlighted by global PMI data, US growth and the Bank of England rate decision.