Markets settled overnight, brushing off the volatility of the potential tariff wars and resuming upward momentum on equities. The postponement of tariffs on Canada and Mexico, allayed market fears of an all-out trade war, while China responded defiantly. The Chinese retaliated with tariffs on some US products, but talks are under way and a positive outcome is expected. The attention of the Trump administration will now turn to Europe and the UK and markets will keenly await their response. The US Dollar safety play continued to reverse, with the EUR regaining 1.0400, while the GBP hit 1.2500 ahead of the Bank of England IRD.Commodity currencies enjoyed the weaker reserve, with the AUD approaching 0.6300, while the NZD looks to regain 0.5700. NZ Unemployment jumped to 5.1%, from 4.8%, but in line with expectations. Market attention now turns to the US labour market and tomorrows Non-Farm Payrolls number, while UK markets will be focused on the Bank of England IRD.
