The Fed Minutes were released overnight, with overwhelming support for current monetary policy and QE infinity. The Fed committed to continue the ‘highly accommodative’ monetary policy, until economic goals of growth and unemployment, were met. This would last until at least 2023. The IMF and World Bank are meeting currently and raised global growth expectations for 5.5% to 6% in 2021, while the G20 Finance Ministers and Central Bankers also met. The gathering of all these global finance rulers is not a coincidence and the great ‘global reset’ will be at the centre of discussions.
US 10 year Bond yields continued to settle, drifting below 1.65%, while the US Dollar stabilised. The trade exposed commodity currencies suffered, with the AUD falling back to 0.7600, while the NZD slipped to 0.7015. Local Business Confidence numbers in NZ may drive the local currency narrative, while Australian PMI data showed continued economic improvement. The AstraZenca drug, being used as a vaccine, has once again raised questions around blood-clotting and warns of dangers to younger recipients. This did not assist the GBP, which fell back to 1.3730, while the EUR traded up to 1.1860.
Central Bankers and Finance Minters meeting and the IMF/World Bank coordination, spells some sort of international action afoot. There has been talk of an international bail-out/stimulus plan and a new currency reset, but time will tell?