The US/Iran ceasefire expired overnight and threats of increased kinetic actions came from both sides. Oil prices spiked to US$85/barrel and markets were consumed by fears of an increasing energy crisis. Economic data from Asia, revealed both China and Japan are beginning to suffer economic damage, with industrial production in both Countries, failing to meet expectations. Japanese Q2 GDP growth also missed targets, coming in at 1.1%, while markets had expected growth of 1.8%. Canadian inflation also jumped to higher level than expected. The US Dollar was weaker, with the EUR trading 1.1570, while the GBP surged above 1.3500.Commodity currencies were beneficiaries of the weaker reserve, with the AUD regaining 0.7100, while the NZD surged to 0.5900. Bond yields across the globe, are on the march upwards, sending warning signals.
