Markets were closed in the US to celebrate the 250th Anniversary of their Independence. A huge 3-Day party will ensue, while markets finish with the DOW on record highs. The Middle East has been relegated to the rear-vision mirror and confidence is resurgent. Very little attention is paid to the record deficit and debt the West has drowned itself in. The critical and existential crises conditions that prevailed before the Middle East war remain. Bond Yields have settled and attention is focused on trade and growth. The US Dollar has settled at elevated levels, with the EUR trading 1.1440, while the GBP pushes above 1.3350.Commodity currencies have stabilised, with the AUD reclaiming 0.6900, while the NZD broke back above 0.5700. The RBNZ meets this week for the latest rendition of interest rate decisions. They are expected to raise rates, which will support the NZD, in the short term, but toughen conditions for retail and business borrowers.
