A nervous beginning to the weeks trade, with the Iran/US peace deal under threat, as the Israelis expand military operation in Lebanon. Iran has suspended negotiations and the US appears to be in no hurry to finalise any agreement. The price of oil spiked back above US$91/barrel, while bond yields in Europe and the US, crept higher. PMI data in Asia and Europe was steady and positive, as we look forward to a plethora of economic data releases, during a busy week. The EUR held above 1.1600, while the GBP pushed above 1.3450.The reserve deflated commodity currencies, with the AUD retreating to 0.7160, while the NZD fell back to 0.5940. NZ markets were closed for the Kings Birthday holiday, while other markets watched developments in the Middle East closely.
