Markets await a peace agreement in the Middle East, energy prices remain elevated, while equities and bonds were static. Markets also await key readings on inflation from both Europe and the US, to evaluate the impact of high energy prices. The Fed left rates unchanged, at their last meeting, confident they had the inflation genie tightly corked in the bottle. The US Dollar was steady with the EUR drifting to 1.1530, while the GBP dipped below 1.3500.The RBA left rates unchanged, but with warnings that further rate rises remained possible, as they remain focused on getting inflation below target levels. The CPI dropped sharply in the last reading, June fell to 3.8%, improving but very difficult considering the massive Government fiscal deficits.
