Asian and European equity markets rallied off the back of strong gains in US markets, leading into the Thanksgiving holiday, celebrated overnight in the US. US markets were closed for the holiday and finished on a strong week of gains, boosted by speculation of Fed rate cuts and crossing the AI bridge. The GBP trades above 1.3200, while Gilt yields quietly creep upwards. The UK budget was in line with market expectations but does not solve this slow-moving train wreck of an economy. The EUR holds just below 1.1600, while markets look at inflation and growth data from Asia and Europe.The NZD continues to post gains, following the RBNZ latest rate cuts. The KIWI surged above 0.5700, boosted by the indications from the Reserve Bank, that the rate cutting cycle has come to an end. Business Confidence, released yesterday, pointed to a big improvement in the economy. The AUD has also managed to post some gains, consolidating above 0.6500. Today’s trade will look closely at Tokyo inflation data and the impact this has on yields and the Yen.
