Trump extended the 50% tariff on Steel & Aluminium, to 40 related products overnight, deflating market confidence and enthusiasm. Markets await the release of the latest Fed Minutes and the annual Central Bank Symposium, at Jackson Hole, commencing tomorrow. European markets will be watching the latest inflation data from the UK, which is expected to rise to 3.7%, worrying markets. The British economy is in a bad fiscal/monetary situation and bond yields are fast approaching dangerous levels, sending warning signs to markets. The US Dollar was slightly firmer, with the EUR trading 1.1650, while the GBP fell back to 1.3480.
The spike in the reserve hit the commodity currencies, with the AUD crashing to 0.6450, while the NZD surrendered 0.5900 ahead of the key RBNZ rate decision today. Local markets are expecting a rate cut and the RBNZ commentary may be important.
