US equity markets closed out the week, testing record highs, as market confidence surges. Trade agreements are coming in ‘fast and furious’. India announced that they were on the verge of securing a preferential trade agreement with the USA, while the EU is battling to close out their own trade deal, before their August 1st deadline. This coming week celebrates an avalanche of economic data, highlighted by inflation and growth, interrupted by Central Bank decisions from the Fed and the Banks of Japan and Canada. The end of the week will focus on the US labour market and the trade deadline of August 1st. The EUR drifted back to 1.1730, while the GBP struggles to hold 1.3400.
The coming week will see some volatility in both Australia and NZ, as trade deals are finalised. This will impact these trade dependent, commodity currencies. The AUD closed off recent highs, falling back to 0.6550, while the NZD clings desperately to 0.6000. Expect a huge trading week ahead.
