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Follow the leader - MarketPulse

Follow the leader - MarketPulse
marketpulse.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from marketpulse.com Daily Mail and Mail on Sunday newspapers.

Time to stop drinking the Kool-Aid ?

1/22/2021 8:50:37 AM GMT The question we have is whether markets are still too positive? The virus keeps spreading, data is sliding, and mutant variants may be immune to the vaccine.  As we end the week, we have to hope that the stimulus packages keep working and trust in the science! We still feel that we have seen the peak of optimism to start the year and that risk sentiment should pull back to match the deteriorating virus situation and disappointing vaccine roll out. After strong New Zealand CPI this morning NZD now has a good story for further strength which supports the bullish technical indicators. Over the coming months an important question will be which central banks begin to exit the extreme monetary measures first. So far RBNZ looks like the front runner given New Zealand’s firm control of the virus and increasing inflation.

Aussie slides despite sharp retail sales - MarketPulse

Aussie slides despite sharp retail sales January 11, 2021SharePrint The Australian dollar has started the new trading week with sharp losses. AUD/USD is currently trading at 0.7685, down 0.91% on the day. The Aussie finds itself in the unusual position of being on a mini-slide, as the US dollar is finally showing some signs of life. US yields boost dollar Solid Australian data on Monday could not stem the Aussie’s slide against the US dollar. On the inflation front, the Melbourne Institute Inflation Gauge rose 0.5% in December, up from 0.3 per cent. The reading marked a 5-month high, pointing to stronger economic activity. Retail sales jumped 7.1% in November, an almost identical gain to the previous release of 7.0%. This strong reading edged above the forecast of 7.0%.

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