Sentiment remains high in markets, with trading around record highs in equities, while bond yields spiked slightly higher overnight. Fed Chairman Warsh spoke at an international meeting of Central Bankers and noted prices remain far too high. The threat of inflation is receding, as the Middle East settles, while EU inflation data revealed sharp falls. US equity markets are experiencing a rotation, from the high tech shares to Blue Chips, mainly trading on the DOW. The EUR retraced, falling back below 1.1400, while the GBP held above 1.3250.Commodity currencies remain vulnerable, with the AUD trading below 0.6900, while the NZD held above 0.5650. Local markets will be looking at Australian trade numbers, set to be released today, while Non-Farm Payroll data remains important.
