Tensions are on the rise in Europe, as the Ukraine remains in focus. The USA and UK are committed to forcing an all-out war, while European leaders search for a solution. The brinksmanship is driving the narrative and British/US diplomacy is wanting. The war is already on, in the East of the Ukraine, with Women and Children already being moved out to Russia proper. Time will tell. Oil prices remain bid, while Gold is sneaking higher, which all points to problems in Europe. The EUR struggles to hold 1.1300, as war threatens, while the GBP grimly holds 1.3600.
Commodity currencies are relatively static, with the NZD looking to regain 0.6700, while the AUD trades around 0.7100. Australian PMI numbers rebounded, despite the surge in virus numbers, as reality and realisation has forced Governments to allow the virus to force herd immunity. NZ Political leaders are far from this reality and continue to enforce mandates and regulations, which will ensure dire consequences for the NZ economy, for some time to come.
German PPI came in at a staggering 25%, so inflation will be rampant in the EU and Central Banks must now be forced to act.