Markets are building on the recent gains, enjoyed early in the week, due to the US trade agreements. The US/China 90-Day trade agreement, accomplished over the weekend in Switzerland, was a massive boost to market sentiment globally. US inflation has continued to soften, defying market criticisms of the new Trump tariff polices, boosting equities and the US Dollar. The Dollar has drifted since in trade, with the EUR regaining 1.200, while the GBP looked to regain 1.3300. All eyes now turn to the inflation and growth data coming from Europe. German inflation was stagnant, while numbers of GDP growth are expected overnight.
The weaker reserve allowed commodity currencies to rally, with the NZD regaining 0.5900, while the AUD pushed back to 0.6450. Trade remains the overriding issue dominating markets and look for gains from the Trump tour of the Middle East.
