Geopolitical risks had been weighing on the markets last week due to the possibility of US and British military action on Syria. Response from the western world to a poison gas attack was sturn and showed every possibility of being credible up to Thursday when Trump cast doubt over its timing. Global trade tensions were also eased when Trump offered to re-join the TPP (TRANS-PACIFIC PARTNERSHIP) which also eased concerns regarding a trade war with China. The market reacted positively with U.S and Euro Zone debt becoming less in demand.
We still have the weekend to get through before we can make an assumption that these market lifts are set to remain but as of time of writing it looks positive. Tensions in Syria could change very quickly so keep an eye on this closely. Next weeks’ calendar is looking positive for the US dollar so we could see some of these trends slipping back into USD favour.