The recovery in US equities and the US Dollar continued, boosted by further conciliatory comments from President Trump. Trump assured markets that tariffs imposed on China would not be anywhere near the current 145% and they would have a very good trade deal with the USA. This followed comments from Treasury Secretary Bessent, that the trade war would be de-escalating. US equities surged for the second straight day, although the disruption is starting to impact economic data, with weaker PMI data coming out of the US and Europe. The EUR slumped back to 1.1320. while the GBP fell to 1.3250.The resurgent reserve took the shine off recent rallies in the commodity currencies, with the AUD falling back to 0.6350, while the NZD dropped to 0.5950. Attention will remain focused on progress of trade talks between the US and China.
