Equities Gain on Reopening Hopes, RBA Stands Pat

By Jfd Team10 days ago

Most major EU and US indices ended higher yesterday, perhaps due to the European Commissions plans to loosen COVID-related restrictions on tourism, as well as largely upbeat earnings season.

Asian Trading

The RBA decided to keep its policy settings untouched, but said that at the July meeting they will consider future bond purchases following the completion of the second AUD 100bln purchases in September.

Stocks Gain As COVID Restrictions Are Lifted, RBA To Consider More QE

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The US dollar traded higher on Friday, and although it pulled back somewhat on Monday, it remained elevated against all the other G10 currencies. It advanced the most against NOK, NZD, EUR, and CHF in that order, while it eked out the least gains versus CAD.

USD performance G10 currencies

The greenback rally on Friday may have been the result of end-of-month portfolio rebalancing, with international investors perhaps loading up on US treasuries. Remarks by Dallas Fed President Robert Kaplan that he and his colleagues should start discussing QE tapering may have also encouraged some USD buying.However, Fed Chair Powell maintained a cautious stance, noting that the economy is doing better but is not out of the woods yet.

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