Global equity markets continued to haemorrhage into the new month of May trading. US Bond Yields surged, with the 10 year breaking through he 3% barrier. This added further fuel to the US Dollar, with the EUR falling below 1.0500, while the GBP slumped to 1.2470. German Retail Sales unexpectedly contracted 2.7%, as the EU considers sanctions on Russian oil, in a further suicide mission.
The rising reserve also hit commodity currencies, with the AUD falling to 0.7030, while the NZD crashed to 0.6420. The RBA may be forced to act on interest rates, after last weeks big spike in inflation, going against the tradition of inaction prior to Federal Elections. This just proves the urgency of the situation. Attention will turn to the FOMC and the Bank of England and the all-important Non Farm Payroll number, released at the end of the week.