Trump opened the door to more exemptions from his steel and aluminum tariffs on Friday, after pressure from allies and intense lobbying from lawmakers, opening up to Australia but at the same time still coming down hard on Europe and China. There is still the potential for a flare-up if Trump takes further steps to punish China or the EU, but for now the market is back focusing on fundamentals. NFP and wages were weaker than expected and investors relaxed their rate hike assumptions a tad, with equities soaring in a broad risk-on tone.
Going into the week, this global growth/low inflation theme that drove markets during 2017 might continue as the only data to watch is US CPI along with US Retail Sales and NZD GDP.
Going into the week I remain bullish on Aud & Cad vs. Euro and Jpy; I also remain bullish US equities.
About the Author
Justin is a Forex trader and Coach. He is co-owner of www.fxrenew.com, a provider of Forex signals from ex-bank and hedge fund traders (get a free trial), or get FREE access to the Advanced Forex Course for Smart Traders. If you like his writing you can subscribe to the newsletter for free.