Global equities bounced back, from the massive losses suffered in the previous week, ahead of tomorrow’s all important US Presidential election. The resurgence of the virus across Europe and the US has forced lockdowns across Europe, while the US has had various State reactions. European markets followed a strong Asian lead, to open an expected volatile week, boosted by strong Chinese Manufacturing PMI data. European markets also gathered some confidence, from their own data, although the lockdowns enforced across Europe should ensure the recovery is at least temporarily stayed.
The EUR fell back to 1.1620, while the GBP slipped to 1.2900, with added uncertainty over the lack of a post-Brexit trade agreement. The virus is causing havoc across global markets and may dampen enthusiasm for the ‘Great Race’, which will be run in Melbourne without the 100,000+ excited spectators. The RBA is also due to announce a rate decision today, but it is unlikely any moves will be made, under cover of the Melbourne Cup. The AUD traded 0.7030, while the NZD held on to 0.6600, both remaining extremely vulnerable to the US Election action.
All polls in the US continue to promise a win for Democrat Biden, but they have been closing fast and 2016 is a constant reminder of the polls fallibility. Equity markets surged after Trump won in 2016 and the US Dollar would be the major casualty of a major spike in market confidence.