Markets steady after a shaky Friday close -...>

FOREX: Markets steady after a shaky Friday close

- Equities closed heavy on Friday after news that Apple were re-shutting a

number of stores in states with high COVID infection rates - feeding through to

another negative open in Asia. Much of this downside has since been reversed,

however, with the e-mini S&P bouncing well over 60 points from the overnight

lows. Cyclicals are stronger in Europe, with consumer discretionary and

materials at the top of the board.

- As a result, the USD and JPY have been sold and remain at the bottom of the

G10 table, with AUD, GBP and EUR on track to test Friday's highs. The recoveries

aren't broad-based however, with EMFX still trading heavy. USD/ZAR is extending

last week's rally today after the South African finance minister forecasted debt

topping 100% GDP in 2025. The news comes ahead of this week's supplementary

budget at which a further ZAR 500bln in stimulus is expected to be announced.

- Eurozone consumer confidence and US existing home sales numbers are the

calendar highlight Monday. Speeches from ECB's Weidmann, de Guindos & Lane are

due as well as BoC's Macklem in his Maiden speech as governor.