Trump announced plans for a worldwide 25% tariff on all steel and aluminium imports, into the USA. The news is a boost for US Steel and Aluminium manufacturers and aids the recent big deal proposed investment in US Steel. It is a reminder of the threat of tariffs, but markets brushed it off and had a positive start to the week. Chinese inflation spiked upwards, from 0.1% to 0.5% annualised, but remains well contained. This coming week markets will focus on inflation data out in Europe and the US, while important GDP growth numbers from the UK and EU, will confirm recessionary conditions prevail. The EUR holds above 1.0300, while the GBP languishes below 1.2400.Commodity currencies remain steady, with the NZD trading around 0.5650, while the AUD inched up towards 0.6300. A Congressional appearance by Federal Reserve Chairman Powell may influence markets overnight.
