Tensions in Iran escalate, as the social upheaval and protest, moves into week three. The Trump Administration support the protestors and have promised physical support, along with tariff sanctions, on Iran’s trading partners. This will test global oil prices as the situation destabilises the region and oil producers in the neighbourhood. The DOJ investigation of the Federal Reserve Chairman, Jerome Powell, has unsettled markets especially the banking sector (who own and control the Fed). The USD gained some ground, with the EUR falling back to 1.1650, while the GBP traded around 1.3450.
The stronger reserve put downward pressure on commodity currencies, with the AUD slipping back below 0.6700, while the NZD drifted below 0.5750. The Japanese PM has looked to take advantage of a lead in the polls, and call an early election, which has sent the Yen to new lows above 159.00.
