Tuesday 1st December 2020
The US dollar was losing ground for most of the session today before a sudden reversal that knocked the Euro off a multi-year high (touching $1.20). NAB’s Ray Attrill explains how it can partially be explained by hedge-funds exposed to US equities rebalancing their portfolios at month-end. The pound continues to perform as though a post-Brexit trade deal has been reached, which it hasn’t, and oil markets will have to wait another day to hear whether OPEC will extend production cuts, and for how long. The relationship between Australia and China continues to worsen, but, as yet, there’s been little economic impact, except for the coal industry. Could the situation escalate? And today, the RBA will do little, whilst Jerome Powell is in front of the US senate to explain the Fed’s plans.