Friday 10th July 2020
It was a choppy session overnight, with markets split between the confidence that things might be getting better versus the realisation that in the US southern states infection rates (and fatalities) are getting worse. On the positive side, the number of people filing for unemployment benefits was less than expected. But rising virus numbers could cause more lockdowns which could impact employment numbers. NAB’s Gavin Friend says the Confidence-COVID dichotomy is playing out in the currency markets, where the impact of Europe reaching a positive outcome in their recovery package next week shouldn’t be underestimated.