US equity markets surged ahead, relieved by the growing confidence surrounding the rescheduled US/China trade talks, next month. Their is growing confidence in markets, coming from China, that a trade agreement is likely to be made. The DOW surged and Bond Yields popped. The Dollar continued a retreat, beat by the growing risk appetite and global growth prospects. US Factory Orders and Durable Goods orders both delivered positive results, while the ADP Private Jobs report, confirmed a strong market. Conversely German Factory Orders plunged, reflecting the parlous state of the German economy. The EUR pushed back to 1.1030, while the GBP surged to 1.2323, reacting to the Brexit chaos spilling out of Westminster and a lower US Dollar.
The AUD was boosted by the positive news regarding the US/China trade talks, pushing up to 0.6815, while the NZD managed to trade up to 0.6375. These trade exposed currencies bask in good news emanating from China and the US and were further advanced by the flagging reserve. Markets will focus on the rhetoric leading up to US/China trade talks and the chaos of Brexit disrupting Europe.