Stocks rallied strongly on Wall Street Friday, recovering losses from the previous day's trade. It has been a volatile holiday period on markets across Asia, Europe and North America, but trade has been extremely thin and the lack of economic data releases, has contributed to the lack of direction. This will all change in the coming week, with inflation readings from across Europe and jobs reports out in the US. Europe is undergoing yet another squeeze on energy prices, as the Ukraine shuts down gas deliveries to Europe. This will only add to the pain suffered by citizens and business’ in Europe, especially in the middle of winter. The USD remains strong, with the EUR trading around 1.0300, while the GBP attempts to consolidate above 1.2400.The strong reserve continues to suppress the commodity currencies, with the AUD struggling to hold 0.6200, while the NZD has slipped below 0.5600. Monetary and fiscal conditions continue to deteriorate, so it is hard to see circumstances changing radically. In the near future. The change in Administrations in the US, will certainly drive the economic narrative, globally.
