Global equity markets continued to lose ground and commodity prices drifted lower, as fears of a global recession rise. This did not assist the commodity currencies, with the AUD crashing to 0.6960, while the NZD plunged to 0.6330. The energy crises and rampant inflation, have raised the probability of a recession in Europe and the US, which hit demand for commodities. The sanctions on Russia have backfired, on an energy dependent Europe, who seem oblivious to the self-harm they are committing though their self-imposed sanctions.
The EUR has collapsed to trade 1.0550, while the GBP has crashed to 1.2330, a major leader in the economic suicide pact. Chinese trade reflected more expected surplus’s but imports were flat and the trade balance was a product of ever increasing exports. Input prices are on the rise and this is adding to global inflation and the recession prospects.