European market rallied strongly amidst all of the mayhem. The EU announced negotiations with the US on tariffs and suspended any retaliation for 90 days. This was enough for positive sentiment to flow back into markets and the big recovery rally continues in equities. Economic Sentiment remained bleak, in both Germany and the EU, as the ZEW report slumped into negative territory. This did the EUR no favours, with single currency slipping below 1.1300, while the GBP held above 1.3200.Commodity currencies continued to overperform, with the NZD looking to regain 0.5900, while the AUD trades around 0.6350. The RBA minutes revealed a strong economic performance but had warnings for the impact of global trade wars and indicated further rate cuts are on the way.
