MLK Holiday in the USA, so very quiet on markets, to open the week’s trade. European markets moved sharply lower after Trump announced tariff increases on some European Countries, that had announced military support for Greenland against their senior NATO partner, the USA. Germany, France and the UK lead eight Countries that decided it was a good idea to send a small token military force to Greenland, as a deterrent to Trump. It had the opposite impact, as markets slumped in response, to the tariff escalation. The US Dollar was lower, with the EUR trading back towards 1.1650, while the GBP regained 1.3400.Commodity currencies benefitted the weaker reserve, as the AUD regained 0.6700, while the NZD surged above 0.5750. Chinese Q4 GDP growth, came in at an annualised 4.5%, while Industrial Production jumped by 5.2%. Japanese bond yields hit highs not seen since 1999, as inflation and growth remain a concern, ahead of a possible snap-election.
