The post-election rally in risk assets continued last week, with US equity indices reaching new record highs as markets digest the substance of Donald Trump’s proposed fiscal policy measures. The US dollar hit a new 13.5 year high against a basket of currencies, driven in large part by the notion that the market believes a December interest rate hike is a near certainty. Helping to improve the case for higher rates was a major uptick in durable goods orders while the housing sector received fresh positive news in the form of existing home sales. Although new home sales dented that optimism, an upgrade manufacturing purchasing managers’ index was enough to maintain positive sentiment. The stronger backdrop for the US dollar saw precious metals and other haven assets retreat. Gold fell back below $1200 per troy ounce on heavy volume. Back in Asia, Japan continues to experience mixed economic fundamentals as trade data worsens while inflation surprisingly improved. The pace of deflation is slowly decreasing, adding to optimism that an inflection point has been reached in consumer prices. Meanwhile, with the exception of Germany and France, Euro Area manufacturing continued to show improvements, rising to the highest point since January of 2014.