US PPI data confirmed inflation was heading substantially lower, allowing bond yields to tumble, along with the US Dollar. The pressure is all but off the Fed, to raise rates at their next meeting, which has surged market confidence. The EUR took advantage and jumped above 1.1450, while the GBP pushed back above 1.3500.
The weaker reserve allowed big gains in commodity currencies, with the AUD looking to regain the ‘Big Figure’ of 0.7000, while the NZD surged towards 0.5850. Chinese economic data remained strong, with Industrial Production accelerating, while GDP showed strong gains, despite the Geo-Political limitations. The Middle East war resumption, has not unsettled markets in this current iteration, as yet.
