Markets began to trade according to economic data releases, rather than fears held over global trade wars. The latest US PPI was softer than expected, joining the last CPI inflation reading, confirming the tariffs have not raised inflation, but in fact the opposite. UK GDP growth surprised, jumping 0.7% for Q1, allaying fears of economic catastrophe that many may feel. EU GDP growth was positive for Q1, giving hope to markets. The trade wars are not forgotten and focus may now turn to those Countries that have not got an agreement in place, with the USA. The EUR traded around 1.1200, while the GBP slipped back below 1.3300, despite stronger than expected GDP numbers.Commodity currencies failed to gain momentum overnight, with the AUD drifting back toward 0.6400, while the NZD lost it’s fight with 0.5900. Australian Employment data was steady, while the latest inflation report, confirmed softening continues. Local markets will look at the latest Japanese GDP data, out today, but Geo-Political events may overwhelm.
