Markets closed the week on a softer note, with no resolution coming in the Middle East and energy prices remaining elevated. The lack of a solution to the Middle East crisis will add inflationary pressures to economies and strain budgets. US Retail Sales remain strong, improving by 5%, as economic data remains positive in the US. Europe is suffering, as high energy prices drive extended recessionary conditions. The economic conditions are the only thing containing inflation. The US Dollar closed the week lower, with the EUR jumping to 1.1565, while the GBP surged above 1.3500.The weaker reserve allowed for further consolidation in commodity currencies, with the NZD approaching 0.5900, while the AUD trades 0.7080. This coming week sees an avalanche of economic data releases, highlighted by inflation and growth readings.
