Weekly Market Commentary commencing 12th October

Equity markets closed out an extremely strong week, despite no fiscal stimulus/bailout from the US Congress, in the lead up to the US Presidential elections. A disrupted week after the President suffered infection from the coronavirus and a dramatic, almost miraculous recovery. The Fed have acted to provide monetary stimulus but Chairman Powell has requested necessary fiscal assistance. The Dollar drifted lower, as economic confidence rose, pushing the EUR to 1.1825. The GBP also bounced back to 1.3030, as monthly GDP jumped to 2.1%, but the annual GDP contracted a massive 9.3%!

The charging stock markets has boosted economic sentiment and the trade exposed commodity currencies. The AUD traded back to 0.7230, post the record breaking budget, while the NZD broke back above 0.6650. The coming week does not have an overflow of statistical data releases, but will have plenty of action, due to the election cycle. The NZ election is next week and the US Presidential election is fast approaching. These will impact the currencies and economies.