A conference in Saudi Arabia between the USA and Russia is underway, to set the table for the main course, when President Trump and Putin arrive in the Kingdom. Top Russian and US officials are already in Saudi Arabia, negotiating is underway, for an agreement by the end of February. Peace in Europe would be a major boost for trade and markets in general, especially in Europe. Major Geo-Political crises must be solved before moving forward on the economic front. War is expensive. The German ZEW Economic Sentiment Report, was a welcome shot in the arm for European markets, which are enjoying a boost to sentiment. The EUR softened to 1.0450, while the GBP managed to hold onto 1.2600.The RBA cut rates, for the first time in four years, in line with expectations. The Bank announced that the long and difficult battle against stubborn inflationary pressures, was over and rate cuts could now begin. The pressure on the RBA has been immense, as difficult economic conditions have prevailed, but the looming election was probably an incentive to begin the relief. The rate cut allowed the currency to weaken a tad, falling back to 0.6350, while the NZD held 0.5700. All eyes now turn to the RBNZ, as they make their latest interest rate decision, today. They are expected to cut by a further 50 basis points.
