The ceasefire holds, with infractions, but market confidence is returning and oil prices are settling. If the resolution to the conflict becomes more permanent, then expect equities to return to pre-conflict levels and inflation to settle. The US Dollar has faded, as a safety play, with the EUR consolidating below 1.1700, while the GBP pushes towards 1.3400. This coming week will be focused on the peace negotiations between the US and Iran. The IMF are also meeting, all week long. The Peace negotiations between Iran and the US failed over the weekend, so bad news for any sort of long term solution.The halt to military actions has allowed the reserve to correct and commodity currencies to surge. The AUD trades around 0.7000, while the NZD is around 0.5800. The crises has exposed the vulnerabilities of Australia and NZ energy policies. Business and the consumer, have been hit hard by the lack of energy certainty of supply and the complete dependence on international markets. Political decisions must now be made to exploit domestic production and supply.
