The US Supreme Court overruled Trumps key international and trade policy, namely tariffs. This has been the key weapon used by Trump to garner international bi-lateral trade deals and also coerce/compel other Countries to conform to US wishes and directives. The tariff policy will be a major blow to the Trump administration, although it does not cover specific tariffs on products, deemed of national importance. These include Auto’s, Pharmaceuticals, Food and certain industries such as steel aluminium etc. Trump will use alternative existing legislation to cover tariffs already in place. US GDP readings also tumbled from an annualised 4.4% to 1.4%. The important PCE inflation indicator also showed inflation spiking to 3%, in another economic blow to the administration. Markets reacted relatively positively to the news, with equities all jumping higher, while the USD slipped. The EUR looked to regain 1.1800, while the GBP approaches 1.3500, once again.The weaker reserve allowed commodity currencies to consolidate, with the AUD pushing back to 0.7080, while the NZD bounced off 0.5950. Oil prices continue to surge as the US threaten military action upon Iran.
