US Markets closed out the week strongly, as an agreement was said to have been reached between the warring parties, Iran and the USA. Oil prices crashed back to US$84.50/barrel, while equities surged and the US Dollar relented. The EUR headed back towards 1.1600, while the GBP regained 1.3400. SpaceX hit the markets, the largest IPO in history, which exceeded all expectations. The ‘float’ was US$135/share, but surged to above US$175/share in trade, creating the first $Trillionaire. This was a boon to markets, but hardly a surprise, dragging massive capital into the ‘SpaceX sector’.
The softer reserve, allowed commodity currencies to stabilise, going into the weeks close. The AUD regained 0.7050, while the NZD consolidated above 0.5800. A huge week is ahead, highlighted by Central Bank rate decisions, including the Fed, Bank of Japan, Bank of England and the RBA. The Bank of Japan is the only Central bank expected to raise rates, as all the others remain at comparatively elevated levels already. The recent surge in inflation is expected to be only temporary, following the peace agreement in the Middle East.
