Equity markets built on losses to close out the week. The losses have been attributed to the looming tariff war, but inflation appears to be on the rise again, despite recessionary economic conditions. Over the weekend the Germans celebrate a Federal Election which could throw up a few surprises on both the left and the right. This coming week will be focused on growth and inflation in both Europe and the US. The Geo-Political threats of tariffs and a global trade war are undermining markets, and this will likely continue in the coming week. The USD has traded softer of late, allowing the EUR to push above 1.0450, while the GBP jumped to 1.2650.The weaker reserve has allowed a recovery in commodity currencies, with the AUD trading around 0.6350, while the NZD has settled around 0.5750. Japanese inflation has broken 4% and is becoming a real concern. The Bank of Japan is being pushed to raise rates further and this has inflated the Yen, which has jumped to 149.50. Markets will be watching the German election results and the impact this may have on the economic and political situation in Europe.
