The EU/US trade Agreement, announced recently, had more details publicly confirmed. The EU will remove duties/tariffs on US imports, while paying a flat 15% tariff, on all exports to the US. They have also committed to massive energy purchases and investment. It is a great deal for the US and reverses the relationship, that has favoured Europe for decades. The Jackson Hole Central Bank Symposium also opened overnight and keenly awaits the keynote address, from the host, Fed Chairman Powell. The Fed is under constant pressure, and this will be the last time that Powell addresses this forum. The EUR fell back towards 1.1600, while the GBP drifted to 1.3420.Commodity currencies remain weak, with the AUD struggling to hold 0.6400, while the NZD looks to stabilise around 0.5800. Australian PMI data was better than expected, while NZ trade data showed some improvement in exports. The problem was that the deficit widened, as imports surged. Local markets will be focused on Japanese inflation data, set to be released today, while Japanese bond yields are spiking.
