US/China trade talks recommenced in London overnight and markets await the outcome, with apprehension. Expectations are high for a recommitment, to the previously agreed interim trade deal, inked in Switzerland. The hope is that a formalised negotiating process would be finalised, and a long-term agreement put in place. Chinese trade data reflected the disruption in trade, post-‘Liberation Day’, but held up much better than expected. The massive trade surplus continued and exports still increased by more than 6%, in Q1. The US Dollar was softer, with the EUR regaining 1.1400, while the GBP broke above 1.3550.The weaker reserve allowed a recovery in commodity currencies, with the AUD regaining 0.6500, while the NZD pushed up towards 0.6050. Inflation data out of Europe and the US, will be a key focus this coming week, following the US/China trade talks.
