Markets closed out a non-descript week flat, but near historical highs, lacking any momentum due to a dearth of statistical data. The lack of economic data raised macro-economic questions surrounding virus/vaccine/lockdowns. The continued destructive Government polices, around the world, fly in the face of pre-Pandemic orthodoxy. The pandemic from WW1 concluded that Governments should quarantine the sick and vulnerable, while allowing the ‘people’ to go about their business. This was the accepted protocol for over 100 years. No more. Governments, across the world, have advocated Universal Quarantine. This has not worked and the virus mutations and ineffective vaccines, have only served to prove this point. Governments will not reverse course, as that would only be an admission of failure, thus condemning the global economy.
The US markets were flat, for the week and currencies were in a state of inertia, with the EUR trading 1.2100, while the GBP remained around 1.3850. The coming week is a virtual tsunami of economic data releases, which will drive the narrative away from the macro geo-political issues. The trade exposed commodity currencies have fared well over the past week, with the AUD trading around 0.7750, while the NZD holds 0.7200. Australian Employment data, could impact local markets, along with the release of the RBA minutes. These trade exposed currencies remain particularly vulnerable to global market events.