The Easter celebrations did little to calm markets, as US equity markets tumbled sharply, to open the shortened trading week. Markets were dominated by a new front opening, when Trump declared war on the Fed and the Chairman, Powell. He labelled the Fed Chair, ‘Mr Too Late’ and too slow, also threatening termination of his role as Chairman of the Federal Reserve, if he does not act to cut rates. This was enough to throw markets into further disarray, with equities tumbling and the Dollar under further pressure. The EUR surged above 1.1500, while the GBP broke above 1.3400, at one stage.
Australia, NZ and most European markets remained closed for the Easter festivities, but the currencies were impacted by the market moves. The AUD regained 0.6400, while the NZD looks to retake the ‘Big Figure’, of 0.6000. Gold surged to all-time record highs blowing through USD$3,400, while nerves continue to fray. The trade war between China and the US escalates further, with China warning their trading partners not to sign trade deals with the US, that may be detrimental to China. It looks like an action filled shortened trading week is in store.
