The last week ended with a bang, as Trump accused China of reneging on the interim trade agreement and retaliation was in the wings. This reignition of the global trade war, was slightly offset by news that higher Courts in the US, had overruled the US International Trade Court and reinstituted Trumps rights to levy tariffs. The trade wars continue and it seems this space is never quiet and boring. German inflation was static and the US PCE Indicator, the Fed’s supposed favourite measure of inflation, was softer than expected. Pressure will mount on the Fed Chairman Powell to cut rates, from markets as well as Trump. The EUR settled around 1.1350, ahead of this coming weeks ECB IRD, while the GBP drifted to 1.3450.Commodity currencies were slightly softer, with the AUD dropping under 0.6450, while the NZD retreated to below 0.5950. This coming week will see an avalanche of economic data, including Australian GDP and trade numbers. US markets will be focused on trade, but important employment data, is also scheduled for release.
