Trade wars were the market focus, once again overnight, as President Trump held an important phone conversation with Chinese President Xi. The leaders of the world's two largest economies, agreed to sit down and talk once again and negotiate a final solution to the temporary agreement, forged in Switzerland. This was enough to stabilise market fears and focus once again on economic data. The ECB cut rates a further 25 basis points, as expected, but signalled rate cuts may be coming to an end. This was facilitated by the recent fall in EU inflation, tumbling below the target level of 2%, to 1.9%. Western political leaders have found the solution to runaway inflation, that being a deep and extended recession. The EUR consolidated above 1.1400, following the ECB comments, while the GBP pushed above 1.3550.The softer reserve allowed the AUD to regain 0.6500, while the NZD consolidates above 0.6000. The latest Australian trade data showed a fall in exports, but these numbers have been very volatile, since ‘Liberation Day’. Attention now turns to today’s Non-Farm Payroll number.
