 Euro ended last week as the strongest one, as pushed up by hope of an agreement over EU's post-pandemic recovery fund. The strength was particularly apparent against Swiss Franc and Sterling. Yet, up till the time of writing, there seems to be no consensus reached at the EU summit yet. Dutch Prime Minister Mark Rutte even complained that Germany Chancellor Angela Merkel and France President Emmanuel Macron were "walking away grumpy" from the meeting. Rutte added that a compromise is still "possible" at over-time during Sunday, but "there remain big issues". Euro's near term fortunate could have a U-turn if the negotiations collapse. Back on the currency markets, Australian Dollar ended as the second strongest partly supported by iron ore prices, as well as general risk appetite. But it should be reminded that coronavirus cases in Victoria continued to surge which risk is rising for New South Wales. A sharp risk reversal in China's stock markets could spill over to Asia and drag down the Aussie too. Sterling was the worst performing one last week, followed by New Zealand Dollar and Yen. |
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