Recovery in the banking sector, in both Europe and the USA continues, boosting sentiment and equities. There are plenty of Central Bankers out in the market offering reassurance and back-up support options, providing relief. The major target on Friday was the Deutsche Bank, with plenty of downside, but this recovered with Central bank reassurances. Improved sentiment allowed he flight to currency safety of the USD and Yen to unwind, with the EUR inching up to trade 1.0780, while the GBP pushed up o 1.2270.
Commodity currencies also benefited the softer reserve, with the AUD consolidating above 0.6600, while the NZD inched back towards 0.6200. German Ifo Business Confidence improved, off terrible lows, while the Dallas Fed Manufacturing Index went backwards. Banking and inflation remain the key issues impacting markets this week.