Markets tumbled, to close out what was set to be a promising to be a very strong week of gains, following Israeli attacks on Iran. Israel launched widespread attacks on Iranian military and nuclear facilities, which triggered a military response from Tehran. This sent markets tumbling, with the Dow Jones crashing nearly 800 points, while oil prices surged. The Middle East has been in a state of war, since the Hamas attacks in October 2023, spreading to Syria, Yemen and now Iran. The US Dollar gained ground, with the EUR falling back towards 1.1500, while the GBP slipped to 1.3550.Commodity currencies were not immune to the turmoil, with the AUD surrendering 0.6500, while the NZD tests the downside of 0.6000. Wars are never good for markets and this widening Middle Eastern crises, only adds to the current war in the Ukraine. This coming week will be closely focused on Central Bank interest rate decisions, led out by the BoJ and followed by the Fed, BoE and the PBoC. These may take a back seat to Geo-Political developments.
