The Iran conflict turned hot again, with military attacks from both the US and Iran, inflaming markets. Bond yields jumped, as did oil prices, while the US Dollar eased. The G20 Finance Minister and Central Bankers meeting also kicked off, which will provide some interesting commentary, but more importantly, allow this most important of group members to finalise plans for monetary coordination. The Weaker US Dollar allowed the EUR to regain 1.1600, while the GBP jumped back to 1.3550.
The softer reserve allowed commodity currencies to stabilise, with the AUD holding above 0.7150, while the NZD consolidated above 0.5900. An Australian inflation reading confirmed Australian inflation is moving upwards, as did CPI readings from Germany. The Middle East must reach some agreement for the energy/inflation crisis to be averted.
