Daily Market Commentary 27th January 2021

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Markets were flat overnight awaiting the rate decision from the Fed and the US GDP number. The Federal Reserve is expected to leave rates unchanged and maintain the current QE, but may give some commentary to inspire markets. The GDP was a record 33.4% in the last quarter and was an enormous rebound from the previous contraction, so this quarters results are expected to moderate. The EUR was settled around 1.2150, while the GBP jumped to 1.3730, supported by some surprisingly resilient employment numbers.

The AUD pushed up to 0.7740, ahead of key inflation numbers to be released later today, while the NZD crept up to 0.7230. These commodity currencies are trading strongly, as a result of rebounding economic and trade numbers, while the reserve weakness also has allowed upward momentum. They remain extremely vulnerable to any major market shocks.

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