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Riots Help The Rally

There's a market cliche that when there's blood on the streets, it's time to buy - and there is rarely blood on the streets in the US. As such, the market dutifully rallied, albeit to less of an extent in the US, with money flowing into European & Asian equities - perhaps, for once, seen as the less risky option.

US Equities Rallied

Though there were some early wobbles, AUD led the way with Copper, both having strong days and pointing the way for the wider market. Yen continued its weakness of the last few months.

Reports that the US government were looking to push through further stimulus helped push US equities up in the afternoon.

Governments are the largest customers for the companies in their economies; they are brandishing the largest credit cards that have ever existed & are not afraid to use them. One day, this will all come back to haunt them (and us)- but that could be some time away.

Groundhog Brexit

0530 : AUD RBA Rate Decision

Surprisingly, not any other major data due, however the Brexit negotiations resume & after GBP's run today, there could be a swift turnaround if headlines are negative.

#AUDJPY #forex #equities #risk #brexit #audusd

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