Political turmoil appears to be spreading across the Western world and markets are getting nervous. The newly appointed French PM, Lecornu, has suddenly resigned after less than a month. He is the latest of five PM’s, in the last couple of years, reflecting the lack of political power and credibility of the Macron regime. Bond yields appear to be on the rise. The EUR trades around 1.1700, while the GBP holds above 1.3450, despite surging Gold yields.The softer reserve allowed the AUD to consolidate above 0.6600, while the NZD trades above 0.5800. Australian inflation data confirmed the upward inflationary pressures and verified the last hold in rates, from the RBA. The RBNZ is expected to cut rates, as the recessionary economy screams for stimulus. A new PM was also elevated in Japan, the first woman to have held the post, and markets celebrated the supposed conservative appointee.
