Markets ended the week trading off record highs, the softness brought on by a stream of weaker economic indicators and Central Banks searching for stimulus. The Swiss National bank, Danish Central Bank and the ECB all cut interest rates, looking for stimulus for flagging economies and support for uncertain times ahead. The advent of President Trump is ringing alarm bells across Asia, North America and Europe, as the dreaded tariffs look likely to be severe and sure. Europe cannot withstand an assault on their export markets, whilst coping with rising energy prices and funding a major war in Europe. This coming week will be dominated by the Fed’s interest Rate Decision and followed by the Bank of England and the Bank of Japan. The Fed is expected to cut while the other two may hold rates. The ECB’s action hit the EUR, slipping below 1.0500, while the GBP slumped back towards 1.2600.The rising reserve continued to batter the commodity currencies, with the AUD crashing to 0.6350, while the NZD fell to 0.5760. This coming week will be once again dominated by Central Bank speculation and action but will also keenly await inflation reports and GDP growth numbers. The wars in Europe and the Middle East rage on, while the prospect of a global trade war looms large. The prospect of a booming US economy, in the coming year, will do a lot to offset the gloom.
