Chinese exports surged 25% year-over-year in January, providing further evidence that the global recovery is on track. Notwithstanding the potential distortions to the data due to the timing of the Chinese New Year, the strength in the numbers has further boosted cyclical assets.

The Reserve Bank of Australia, while holding rates unchanged last week, signaled that there is scope to ease policy further this year.

The ECB hinted that the high euro exchange rate may force its hand to cut rates, in a move many see as a verbal intervention and the ECB’s contribution to the “currency war.”

With further possible debasement of the world’s major currencies to come, the attraction of hard assets such as gold and other commodities is likely to remain strong.