Forex

Markets have largely ignored the growing global threat, that is China, who have been aggressive across the world. China has been expanding their sovereignty across the South China Sea and now Hong Kong. They have passed laws overriding the Hong Kong legislatures autonomy, in an effort to force the City/State into the Communist regime, many years before they had committed to. The Chinese have also been fighting border skirmishes with India, which seems to indicate a more aggressive Chinese foreign policy. This will not go unanswered, but China clearly has calculated, they will prevail. Markets have been on a massive

The European Union announced an enormous EUR $750 Billion recovery plan. The European Commission announced this program as a ‘common debt’, which makes the debt the collective responsibility of all member nations, breaking from previously independent fiscal responsibility. This is significant break from the EU and ECB rules and makes fiscally strong nations (Germany, Holland, Austria) responsible for the hugely indebted nations such as Italy, Greece and Spain. It could open ‘Pandora’s Box’? The EUR attempts to regain 1.1000, while the GBP settled around 1.2250. Markets rallied on the European news, despite events in Hong Kong, which could threaten global trade.

US Markets surged with confidence after the Memorial Day long weekend. Markets were awash with further positive news over progress on a vaccine, for the coronavirus. There are many companies now testing a vaccine for the coronavirus and the latest launching human testing was Novavax, while Merck announced progress and others joined the race. There is growing confidence surrounding the re-opening of European and US economies and with it a ‘snap-back’, V-shaped recovery! The safe haven Dollar continued to cede ground, with the GBP charging up to 1.2325, while the EUR approaches 1.0980. Economic data is now stabilising and looks