US markets surged with confidence overnight, triggered by strong numbers released from market giants Alphabet and Caterpillar. This was enough to lead to a surge in sentiment, with equities hitting record highs and bond yields reversing recent spikes. The situation in the Middle East has not changed but oil prices also plunged, offering hope for a solution to the energy crises. The US Dollar safety play was also reversed, with the EUR surging towards 1.1740, while the GBP looks to regain 1.3600.The crash in the reserve sparked a rally in the commodity currencies, with the AUD soaring back close to 0.7200, while the NZD regained 0.5900. The Bank of England and the ECB both left rates unchanged, but warned of imminent rises, if the energy crises was not resolved. All eyes remain on the Middle East, but rhetoric is always tempered by the end of the trading week to ensure markets close calmly.
