Markets rallied overnight, with bond yields drifting lower and US equities heading back towards record highs. The failure in peace negotiations, between Iran and the USA, was brushed off. The US blockade and the far-reaching consequences of such a move surprised the Iranians. Communications resume. The US Dollar continued to decline, with the EUR surging to 1.1800, while the GBP hit 1.3570.The RBNZ warned of a looming inflation explosion and rate rises would be needed, if the inflation balloon materialised. Not if the war concludes and this is a temporary bubble. The NZD continued to gain ground, hitting 0.5900, while the AUD powered through 0.7100. Chinese imports surged, in the last month, reflecting the provisioning for a crisis.
