 Euro ended as the worst performing one last week as investors could have started to reassess the economic outlook. As ECB meeting accounts pointed out, recent positive market developments were "not fully backed by economic data". Indeed, they might be based on "overly optimistic expectations" about the Next Generation EU recovery package, and progress on vaccine development. PMIs were a huge blow to optimism with French manufacturing back in contraction. Severe slowdown was seen in the services sector. In the background, another round of rather meaningless ended with nothing but confirmation that no progress was made. Swiss Franc was somewhat dragged down by Euro as the second weakest. Australia Dollar was the third worst performing, as Victoria's lockdown appeared to be reflected in data while China's rebound looked slowing. Yen was the strongest one as treasury yield pulled back. It's followed by Canadian Dollar , and then Sterling and Kiwi. Dollar, despite the late rally attempt, ended mixed only, held below key near term resistance levels against all major currencies. |
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