Markets continued the ‘Trump’ rally, with US equities surging to record levels, on the Veterans Day Holiday. Markets are loving the certainty following the US Presidential Elections and equities are reflecting that. The administration will not take power until January 20th 2025 and there are massive macro and micro economic problems to address. The US Dollar regained some support, with the EUR retreating to 1.0650, while the GBP drifted to 1.2870.
Commodity currencies suffered the stronger reserve and disappointing news from China, regarding stimulus. The Chinese Government announced a 10-Trillion Yuan bail-out for local Government, over the next 10 years, which underwhelmed market expectations. The AUD slipped back to 0.6570, while the NZD dropped to 0.5950. A big week ahead is expected, filled with economic data releases, and a special focus on inflation in Europe and the USA.
