Global equities continued to edge higher, on improved sentiment, following the Pfizer ‘vaccine’ approval from the FDA. The approval will remove some doubt (from some) regarding the safety and effectiveness of the vaccine, thus pushing up population vaccination levels, to ensure stronger economic reopening and recovery. This allowed the Nasdaq to break above 15,000 and support the rebound from last weeks losses. The Richmond Fed Manufacturing Index plunged, while US New Home Sales moved back into positive territory.
Jackson Hole commences Thursday, in Wyoming, with the Fed Chair likely to outline plans for the tapering of QE. He is also likely to warn of caution and continue to hold interest rates at historically record lows. The Dollar continue to soften, with the EUR trading 1.1740, while the GBP holds above 1.3700. German GDP was slightly higher than expected in Q2, increasing 1%, 9.4% annually.
Oil prices rebounded strongly and commodity currencies jumped higher, with the AUD heading towards 0.7250, while the NZD broke through 0.6900 once again. NZ Retail Sales surged 3.3% and local markets now await trade data, due for release today. Australia and New Zealand remain in various states of lockdown, which is devastating business, but the liquidity is supporting many asset classes.