Markets are trading with confidence, following the announcement of the ‘biggest trade deal ever’, the EU/US Trade Agreement. China negotiations with the US ended in Stockholm, with no result, but a probable extension of an interim agreement is likely. The deadline of August 1st, fast approaches and most Countries will be receiving a letter informing them of their new trading conditions, with the USA. Australia and NZ will be hoping for their previously allocated 10%. Attention now turns to the Fed rate decision tonight. The Jolts Jobs report in the US showed the labour market remained tight, while the flow of major trade deals, adds pressure on the Fed to cut rates. The EUR continued to be trashed, falling back to 1.1500, while the GBP slid to 1.3320.The stronger reserve continued to undermine the nervous commodity currencies, with the AUD sliding to 0.6500, while the NZD fell to mid .59s. Local markets will be watching the Australian inflation number closely today, which is expected to soften, while NZ Business Confidence may impact local NZ markets.
