Daily Market Commentary 9th February 2021

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US equites opened the week moving into historical and record territory, once again. A quiet day, in terms of global economic data releases, which allowed markets to focus on the $1.9 Trillion Bail-out/stimulus bill Biden is attempting to push through the US Congress. In Europe the focus is around the pedestrian roll-out of the vaccine, while German Industrial Production collapsed to literally zero, amidst the savage lockdowns. The EUR held on to gains, trading 1.2040, while the GBP pushed up to 1.3740.

The trade exposed commodity currencies returned to positive territory, with the AUD regaining 0.7700, while the NZD broke back above 0.7200. The lack of global economic data will ensure markets focus on macro issues. The virus vaccine rollout, stimulus monetary policy. The politics of the massive US bailout will be high on the agenda. Equity markets and assets bubbles are being stoked by the unprecedented liquidity expansion by global Central Banks, which is set to continue for an eternity, or until the whole system explodes.

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