Markets stabilised overnight, with a ceasefire announced in the Ukraine war, and US inflation easing more than expected. Markets were relieved when US CPI numbers eased more than expected, falling to 2.8% annualised, temporarily removing one of the major economic threats. The US reached a ceasefire agreement, in Saudi Arabia, with the Ukrainian delegation and immediately restored military support for the Ukraine. This was a relief to markets, especially European, but means nothing, unless the Russians concur. Equity markets stabilised and the US Dollar was steady, with the EUR trading around 1.0900, while the GBP approaches 1.3000.
Trade exposed commodity currencies also managed to settle, with the AUD regaining 0.6300, while the NZD consolidated above 0.5700, Markets have not seen the end of the extreme volatility, with the Europeans now promising retaliatory tariffs on US goods, while the US will respond, with their new reciprocal tariffs program.
