The ‘Santa Claus Rally’ continues throughout the Christmas New Year break, amidst very light trade, which is dominated by speculation over the latest rendition of the virus mutation. Infection rates have soared, but the low impact has allowed the recipients to gain natural immunity and perhaps end the pandemic. This is the natural course for all viral infections, the heightened infection rates and the lower hospitality and morbidity, allows the population to gain herd immunity and kill the pandemic. Good news for the world and band news for ‘Big Pharma’ who were among the few losers on equity markets.
The impact of new restrictions in Europe has damaged their economies and currencies, with the EUR trading around 1.1300, while the GBP consolidates above 1.3400. Japanese Employment was stronger, as was Industrial Production, as they have killed the Pandemic with treatment, rather than ‘vaccine’. Commodity prices continue to support the associated currencies, with the AUD holding above 0.7200, while the NZD drifted below 0.6800.
More of the same is likely for the final trading days of the year, with light trade in markets and few economic data releases globally.