The G7 closed overnight, with a thorough endorsement and support for the Ukraine, while the leaders failed to address inflation, recession and the energy crises. Unity was the name of the game and these Western elite leaders, achieved that. The focus of global action now turns to the NATO conference being held in Spain. Leaders there have announced a plan for a massive build-up of military forces to counter Eastern threats. The leaders will promptly rubber-stamp this increase in force, by allocating $Billions in resources. The other major task will be the expansion of member States, with the inclusion of Finland and Sweden. Turkey may be a small problem on the unity ticket?
German Consumer Confidence has collapsed, plunging to minus 27.4, as business and the consumer struggle with the energy crises. The US was no different, with consumer confidence crashing below the key 100 level, to 98.7. This follow the recent record lows in the important University of Michigan Economic Sentiment report, which has plunged to historical 70 year lows. The EUR fell back to 1.0520, while the Yen continues to test lows, trading 136.20.
Commodity currencies are not immune to the dire economic revelations, with the rising reserve impacting the currencies, despite high commodity prices. The AUD slipped back below 0.6900, while the NZD fell under 0.6250. Growth and Inflation will continue to dominate markets.