US equity markets plunged lower overnight, worries about the US labour market and AI valuation concerns. The lack of Government data, as a result of the US Government shutdown, has increased the emphasis placed on what little economic data there is available. The important Challenger Jobs Report provides job cut measures and this took a big hit overnight. Job cuts increased by 183% on last month and 175% on the same month last year. This shook markets, who have been sailing partially blind and was reflected in equities. The US Dollar went south, allowing the EUR to recover back to 1.1540, while the GBP reclaimed 1.3120, following the Bank of England decision to hold rates.
Commodity currencies did not benefit the weaker reserve, with the AUD tumbling back to 0.6480, while the NZD retreated to 0.5630. Trump tariffs are the backbone to policy and trade and the Supreme Court decision, would cause mayhem, if negative.
