Markets in the US rallied to close out a strong week of gains on equity markets and in the US Dollar. Trade talks, between China and the US. were denied by China, but the Trump administration is talking compromise and negotiations. This has led to a surge in confidence on global stock markets, equity and bond markets. Global trade and more particularly, US/China relations, are set to continue to dominate market trade and volatility. This coming week sees an avalanche of global economic data releases, led by inflation growth and employment. Europe is expected to show signs of economic growth and an emergence from an extended and deep recession, while the US will release important growth and inflation data. The EUR will open trade for the week around 1.1350, while the GBP is expected to trade above 1.3300.Improved global sentiment is set to solidify gains in commodity currencies, with the AUD looking to regain 0.6400, while the NZD outperforms trading 0.5950. Australian, European and US inflation will be revisited this week and all are expected to show signs of further falls. US/China trade negotiations are likely to continue to dominate market trading in the coming week.
