US markets digest the weaker than expected US labour market data and assess this is as not good news. Equities are heading south, as is risk appetite, while the word is that the Trump administration is looking to tighten up rules on share markets and the participants. This will involve restrictions on dividends, share buy-backs and executive compensation limits. UK inflation tumbled to 3.2%, from 3.6%, green-lighting a rate cut from the Bank of England, when they meet tonight. The GBP fell sharply on the news, plunging to 1.3350, while the EUR was steady at 1.1750.
Commodity currencies are suffering the gloomy recessionary news from both the US and Europe. The AUD has plunged to 0.6600, while the NZD has fallen all the way to 0.5770. The NZ Current account in Q3 blew out, to nearly $8.4 billion, following improvements in Q2. This current account deficit must be funded and it will be through borrowing, asset sales and foreign investment. It does explain recent Government policy speculation.
