The US Non-Farm Payroll number was stronger than expected, allowing further space for the Fed to leave interest rates unchanged. This follows the FOMC Minutes release, which revealed Fed members were in a ‘sit and hold’ mode, awaiting inflation readings and Trump trade policies. The new Trump Administration will be sworn in the 20th January and it will be a lot more than just tariffs that are revealed, Day 1. The Fed were never convincing in their rate cut cycle and this was reflected in the US Bond Markets. Bond Yields have been steadily rising, with the 10-Year yields topping 4.7%, last Friday. This has supported a strong US Dollar, with the EUR tumbling to 1.0220, while the GBP crashed to 1.2200.Commodity currencies continue to suffer the strong reserve, with the AUD falling below 0.6150, while the NZD plunged to 0.5550. FX Currencies are experiencing multi-year lows, against the US Dollar, and it only promises to get worse. All will be revealed once the new US Administration is sworn in and begins to reveal policy.
