Trade continues to dominate markets overnight, with the Trump administration further escalating prohibitive tariff sanctions on India. India appears to be the target, hoping to break the weak link in the BRICS group, rather than China. Switzerland was shocked by the punishing tariff sanctions, imposed by the USA and in a state of somewhat disbelief, sent a high-powered negotiating team to America, led by the President. Economic data has taken a back seat to all of the action in global trade. The EUR continued to recover, jumping to 1.1650, while the GBP broke back above 1.3350.
The weaker reserve allowed for further recovery in commodity currencies, with the AUD looking to regain 0.6500, while the NZD surged above 0.5900. NZ Unemployment rose to 5.2%, from 5.1%, but this calmly digested as it was less than expected. Markets will look closely at trade data coming from China and Australia, while the Bank of England, may resume rate cuts later tonight.
