 The global financial markets were basically in euphoria last week. Lockdown restrictions continued to be eased. ECB provided more stimulus by expanding the crisis purchase program. Surprised growth in US and Canadian employment in May argue that the worst of coronavirus pandemic is already behind us. More importantly, investors seemed to be betting on a V-shaped recovery in the US. Risks, like persistently high coronavirus infections in South American, and US-China tensions, were generally ignored. In the currency markets, New Zealand and Australian Dollar ended the week as the strongest ones. Yen and Swiss Franc were the worst performing ones, followed by Dollar. While Euro ended just mixed, it's bullish development is worth much attention. Both EUR/CHF and EUR/JPY broke important resistance levels last week which indicate medium term bullish reversal at least. The focus will turn to EUR/USD to see if it will eventually follow EUR/CHF and EUR/JPY to reverse the larger bearish trend. |
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