Markets charged into the weekend challenging record highs, as peace negotiations in the Middle East continue, despite military interventions, on both sides of the conflict. Bond yields across Europe and the US continue to improve, while oil prices tumbled to US$87/barrel. Inflation is impacting European economies and GDP growth is moving back into recession territory, not that have really left it, for the last six years. The US Dollar continues to decline, with the EUR trading 1.1660, while the GBP moved above 1.3450.The softer reserve allowed for further gains in commodity currencies, with the NZD fast approaching the ‘Big Figure’ of 0.6000, while the AUD looks to regain 0.7200. The KIWI has surged since the hawkish RBNZ meeting and the local Budget. A big week of global economic data releases, but expect Geo-Politics to continue to dominate markets.
