Equity markets staged a recovery on Friday, following a week of heavy losses and much volatility. Markets had been buffeted all week by the escalation of the global trade wars, triggered by the USA. Europe has threatened to impose retaliatory tariffs on the US, while the US immediately responded with a potential hike of 200% on European Wines and Spirits. The US have been going back and forth with Canada, in a battle that Canada can only lose. UK GDP contracted 0.1% for January, surprising few and weakening the GBP, which slipped to 1.2910.The trade exposed commodity currencies experienced some relief on Friday, as market confidence improved. The AUD managed to regain 0.6300, while the NZD consolidates above 0.5700. This coming week welcomes a slew of Central Bank Interest Rate Decisions, lead out by the Fed and including the Bank of England, Bank of Japan, PBoC and the Swiss National Bank. Not much action is expected, although the growing uncertainty of a global trade war, will mean Central Banks will likely err to the downside.
