Markets in the US rallied strongly to close out a week of strong gains, brushing off a shock headline US GDP number. US equities rallied into the close for the week, opening the month of May on a positive note. Non-Farm Payroll blasted past expectations, curing fears of a recession and a weak labour market. Confidence is beginning to grow on Wall Street and the furore over the Trump tariffs, is beginning to fade. The coming week is highlighted by interest rate decisions from the Bank of England and the Fed. The Bank of England is expected to resume interest rate cuts, but Powell is expected to hold rates, defying President Trump. The sparks will begin to fly between the Trump administration and the Federal Reserve, if Chairman Powell continues to defy the President. The US Dollar was softer, closing out the week, with the EUR trading back up to 1.1350, while the GBP holds 1.3300.Commodity currencies benefitted the weaker reserve, with the AUD jumping to 0.6450, while the NZD trades around 0,5950. The big action over the weekend is the Australian election, which is expected to see the incumbent hold on to power. If the marginal polls are incorrect and the opposition is elected, then the markets will not be impacted greatly, other than in a more positive fashion.
